Brazilian stocks fall in US premarket trade after Lula's reelection; Nu Holdings down 23%

US-listed Brazilian stocks fell in premarket trading on Oct 26 after Luiz Inácio Lula da Silva won the Oct 25 presidential runoff with 51.79% of valid votes to Flávio Bolsonaro's 48.21%, as announced by the Superior Electoral Court (TSE) [1][2]. Bolsonaro has refused to concede [3]. Citi analysts said the result "came against investor expectations" [4].

• XP Inc. fell as much as about 45% before the open [2].
• Nu Holdings fell about 23% to around $11.70 [2].
• Petrobras fell as much as about 22% [2].
• Itaú Unibanco and Banco Bradesco were among Brazilian lenders down between 23% and 29% [4].
• Brewer Ambev fell about 18% [4].
• The iShares MSCI Brazil ETF traded at $31.83, 25.3% below its Oct 23 close [5].

In São Paulo, futures on the benchmark Ibovespa index fell 19.85% to 166,790 points at 9:36 a.m. local time, and dollar futures rose 9.16% to 5.43 reais [6]. TradingKey attributed the selling to concerns over fiscal policy and its effect on inflation, interest rates and the real, which shape funding costs and credit demand for lenders such as Nu, which mainly serves Brazil [2]. For Petrobras, investors focused on government policy toward state-owned energy companies, including fuel pricing and shareholder returns [2]. The Brazilian central bank's monetary policy committee (Copom) meets on Nov 3 and Nov 4, with its rate decision due on Nov 4 [7].