The Ibovespa advanced nearly 1% on Tuesday, trading close to the 179,000 mark, driven by energy stocks and renewed expectations of further Selic rate cuts. Petrobras climbed more than 1.5% as escalating tensions in the Middle East pushed oil prices higher, while PRIO added over 1%. Rising energy costs and the prospect of an additional Fed rate hike sent global bond yields higher, weighing on financials and broader equity markets. Even so, evidence of a gradual cooling in economic activity strengthened bets on continued monetary easing by the BCB, lending support to the index. Brazil’s GDP expanded 0.5% in the second quarter of 2026, but a decline in household consumption highlighted ongoing consumer weakness. Although the BCB has already started an easing cycle, the Selic rate remains high at 14%. Utilities traded mostly in positive territory, and retail shares gained around 1%.