The Ibovespa index dropped by 0.8%, closing at 183,134 on Thursday. This decline was spurred by a significant sell-off in U.S. equities, which prompted a global shift away from riskier assets, overshadowing earlier positive sentiment from domestic markets. The steep fall in New York stock indices, particularly in the technology sector, exerted downward pressure on global markets. This, in turn, strengthened the dollar against the Brazilian real and led to an uptick in long-term DI rates, which are especially susceptible to external forces. Banking stocks, which initially registered gains, reversed their course, and small caps lagged due to a waning appetite for risk. Earlier in the day, the Ibovespa reached record levels above 186,000, buoyed by optimism following signals from the Central Bank that a cycle of Selic rate cuts might commence in March—an indication that momentarily lowered rate expectations and bolstered banking and commodity stocks. However, these encouraging domestic monetary signs were overshadowed by the external downturn by mid-session, highlighting the market's vulnerability to global risk dynamics.