Ibovespa Surges After Powell Speech Fuels Global Risk Appetite

Brazil’s stock market closed Friday with strong gains as global investors reacted to Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole symposium.

The Ibovespa ended at 137,968 points, up 2.57 percent, its best daily performance in weeks.

During trading the index briefly crossed 138,000 points, while the weekly balance showed a 1.19 percent advance.

The shift came after f that U.S. monetary policy remains restrictive and that changing risks may justify an adjustment.

Markets interpreted the statement as confirmation of a September interest rate cut in the United States. U.S. Treasury yields fell, the dollar weakened, and equities rallied.

The Dow Jones closed at a record high, while the S&P 500 and Nasdaq gained more than one percent.

European markets followed with the STOXX 600 up 0.40 percent, and London’s FTSE 100 extending its record streak.

Asian indices ended mixed, with the Nikkei up 0.05 percent and Hong Kong’s Hang Seng advancing 0.93 percent.

Ibovespa Surges After Powell Speech Fuels Global Risk Appetite

Brazil’s rally was broad based, with no index constituent closing lower. Retail, education, and construction shares benefited most as easing rate expectations lifted cyclical stocks.

Natura rose 8.29 percent, Cogna advanced 7.72 percent, Minerva climbed 7.08 percent, Cyrela gained 6.74 percent, and MRV rose 6.69 percent.

Petrobras was the most traded stock, supported by higher oil prices. Banks also recovered, with Banco do Brasil rising more than 4 percent. Trading volume reached around 22.7 billion reais.

The real strengthened as the U.S. dollar closed at 5.4258, down 0.97 percent on the day, though it still gained 0.52 percent over the week.

Local interest rate futures tracked U.S. moves, with the January 2027 contract falling to 13.96 percent from 14.09 percent.

Domestically, the government introduced a credit package to soften the impact of new U.S. tariffs on Brazilian exports.

BNDES will provide 10 billion reais in additional financing, raising total support to 40 billion reais, with up to 22 billion reais in guarantees for small and medium firms.

Technically, the Ibovespa closed above key resistance at 136,000, with momentum indicators improving.

The daily RSI stood at 58, showing neutral to bullish conditions, while the MACD line turned higher, signaling strengthening momentum. On the four-hour chart, RSI reached 61, confirming renewed short-term strength.

Bollinger Bands showed price testing the upper band, highlighting potential resistance near 139,000 to 140,000. Support remains between 134,900 and 135,300.

ETF flows continue to support Brazilian equities, with the main U.S.-listed fund EWZ recording inflows of 1.27 billion dollars over the past year.

The Global Liquidity Index, which tracks funding conditions, moved upward, reflecting easier global liquidity that supports emerging markets.

Brazil’s market now depends on confirmation of a U.S. rate cut in September, commodity price stability, and the execution of domestic credit measures.

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