Morgan Stanley and Hyperliquid lead gainers as Brazilian banks slump

what happened

Major Wall Street indexes each gained at least 1% over the week despite a sharp selloff in technology stocks, according to a Seeking Alpha review. Among megacap financials, Morgan Stanley rose the most, up 2.68% to $184.30, with the shares supported by its key role in the Anthropic IPO. Mastercard added 2.31%, while HSBC fell 5.80% to $85.42 after missing its third-quarter non-GAAP EPS and revenue estimates.

Brazilian stocks led the losers after Luiz Inácio Lula da Silva secured a fourth term by defeating right-wing challenger Flávio Bolsonaro in Sunday's runoff. The result overturned market expectations of a shift toward more conservative economic policy. Banco Bradesco fell 37.35%, Itaú Unibanco dropped 26.27% and Nu lost 23.42%.

why it matters

For investors, the key point is that the Brazilian election outcome changed expectations for economic policy, and that hit local banks hard. The rest of the week's data shows strong quarterly reports supporting individual names such as Evercore and SoFi Technologies, while Hyperliquid Strategies gained 25.40% to $11.01.

market impact

Brazilian banks: election reset policy expectations, pressure on the shares

• ▼Brazilian bank shares pressure down — Lula's win overturned expectations of more conservative economic policy

instruments