Lula Wins Brazil Election, Stock Market Plunges 30% Amid Fiscal Concerns

Luiz Inácio Lula da Silva won Brazil's presidential election with 51.77% of the vote. Following the result, Brazil's stock market collapsed nearly 30% and lost over $200 billion in market capitalization, while the Brazilian Real depreciated about 10% against the dollar. Analysts warn that Lula's fiscal policies may reverse recent market gains, drive interest rates higher, and weaken the currency, prompting investors to seek dollar-denominated assets as a hedge.