Ibovespa drops 3,000 points on Bolsa Família fiscal fears, recovers

The Ibovespa has experienced recent volatility, marked by a 0.63% decline and the end of a four-week winning streak, primarily driven by global interest rate fears, domestic electoral uncertainty, and blue-chip losses. While initial market stress from a Bolsa Família adjustment announcement led to a sharp drop, the index subsequently recovered, suggesting the fiscal impact is currently viewed as manageable. Persistent sensitivity to fiscal policy signals and ongoing political uncertainty remain key factors influencing market sentiment.