Brazilian markets plunged and erased more than $200 billion in value at Monday’s open after Luiz Inácio Lula da Silva stunned markets by defeating Senator Flávio Bolsonaro in Sunday’s runoff — a result that many prediction markets had put at only about a 20% chance.

Key market moves
– The iShares MSCI Brazil ETF (EWZ) — a New York-traded basket of Brazil’s largest equities — plunged as much as 26% from Friday’s close of about $42.60, hitting $31.40 before trimming losses to roughly 23% at $32.84 by 10:38 a.m. ET. That level effectively wipes out EWZ’s strong 34% gain earlier in 2026, leaving the fund roughly flat year-to-date.
– Brazil’s benchmark Ibovespa tumbled as much as 17% to about 170,000 points. B3, the São…