Brazilian Stocks Rout Sends Nu Holdings to Worst Day on Record After Lula Win
Nu shares fell nearly 20% and the iShares MSCI Brazil ETF slid about 21% as investors feared looser fiscal policy during Lula's new term.
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what happened
Shares of digital bank Nu Holdings (NU) plunged on Monday as a broad selloff hit Brazilian equities, following the re-election of President Luiz Inácio Lula da Silva to a fourth term. Monness Crespi launched coverage of the stock with a buy rating and a $20 target, pointing to long-term growth in buy-now, pay-later services and neobanks. According to Stocktwits, Nu was down nearly 20% at the time of writing and on course for its largest one-day loss ever.
XP, the Brazilian brokerage and investment platform, took the heaviest hit, falling more than 50% to a one-year low. Inter & Co (INTR) lost about 36%, StoneCo (STNE) 29% and PagSeguro (PAGS) 25%. MercadoLibre (MELI), which counts Brazil as its biggest market, dropped roughly 15% in midday trading.
The iShares MSCI Brazil ETF (EWZ), which tracks large Brazilian companies, was heading for its worst session since 2020, down about 21%. The record is a 23.1% fall in March 2020, and a drop beyond 23% would be the fund's worst day since its 2000 debut. According to TheFly, investors worried that Lula's administration could expand government spending and weaken fiscal discipline, triggering risk-off moves across Brazilian assets.
why it matters
The sell-off reflects a risk-off reaction to concerns about fiscal policy in Brazil's new term. Fintech names with heavy exposure to the domestic market and the EWZ fund are especially sensitive to such expectations, and the sharp move points to a higher perceived risk premium on Brazilian assets.
market impact
Brazilian equities and EWZ: fiscal worries drive capital outflows and pressure the market; local fintech stocks face heavy selling.
tags
instruments
sources
- NU Stock Suffers Worst Day On Record In Brazil Market Rout – Monness Crespi Initiates Coverage With ‘Buy’ Rating — Stocktwits, 26 October 2026 at 16:33 UTC
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