FX.co ★ Ibovespa Falls Following Jobs Data and Fed Decision

The Ibovespa fell more than 1% on Wednesday, slipping below 175,500 points, as investors digested stronger-than-expected Brazilian labor market data alongside the latest Federal Reserve policy decision. Brazil generated a net 145,161 formal jobs in June, beating market expectations of 115,000 and underscoring the resilience of the labor market. The data bolstered expectations that the Central Bank of Brazil may adopt a more hawkish stance.

As anticipated, the Federal Reserve left interest rates unchanged. However, three FOMC members voted in favor of a hike, heightening concerns that global borrowing costs could stay elevated for longer.

Financial stocks led the decline: Itaú and Bradesco each fell 2%, Itaúsa dropped 1.5%, and B3 slid 3%. Santander sank 7% after missing return-on-equity expectations. Among other names, Axia lost more than 1%, and Sabesp retreated nearly 4%. Ambev gave back earlier gains to trade 1% lower, paring its earnings-driven rally, while Vivo and TIM extended their recent losses. In contrast, Petrobras gained 2%, supported by higher oil prices.