The Ibovespa climbed 1.4% on Friday to a record close of 209,067 points, after the first post–first-round voting-intention polls confirmed Flávio Bolsonaro’s lead over President Lula in the runoff. Investors tend to view Bolsonaro as more fiscally conservative, reinforcing expectations that a potential administration would tighten control over public spending and improve Brazil’s fiscal outlook. Even so, the race remains highly competitive, with some polls indicating a statistical tie.
Financial stocks largely advanced: Itaú gained 2.3%, while Banco do Brasil (BB) and Itaúsa each rose 1.6%, and B3 added 2.5%. Petrobras edged up 0.9% despite swings in international oil prices. Vale erased earlier losses late in the session and closed 0.38% higher, trading in a tight range after iron ore prices hit multi-month lows.
Retail names posted strong gains as bond yields fell in the wake of the polls, even against a backdrop of accelerating inflation and an inflation print above the upper bound of the Brazilian Central Bank’s target range. Magazine Luiza jumped 19.2%.
For the week, the Ibovespa advanced 8.82%, marking its strongest weekly performance of 2026.