Brazil small caps surge 20%+ in three sessions; Ibovespa gives back gains

A sharp rally in Brazilian small caps saw 17 of 18 top gainers rise over 20% in three sessions, while the Ibovespa initially jumped 7.7% then fell 1.3% over the next two days. The divergence suggests speculative retail-driven flows into small caps rather than broad institutional buying, with the index now flat amid global risk-off. This signals fragile market breadth and potential volatility if the rally unwinds.