The Ibovespa fell nearly 2%, slipping below 185,500 points, pressured by weak quarterly results from Vale and WEG, caution around the US Federal Reserve meeting, and expectations ahead of the upcoming Selic decision. Vale sank more than 5% after posting earnings that missed market estimates, while WEG dropped almost 6% after reporting a decline in profits.
On the external front, the Federal Reserve kept its benchmark interest rate in the 3.5% to 3.75% range, pointing to surging oil prices and heightened economic uncertainty stemming from the war involving Iran. In Brazil, the central bank is widely expected to cut the Selic rate by 25 basis points after the market close. However, recent upside surprises in inflation have kept some wagers on a pause alive and raised the odds of more hawkish forward guidance.
Major banks traded in negative territory: Itaú and Bradesco both fell more than 2%, while Santander lost nearly 2% after missing its Q1 2026 earnings forecasts. In contrast, Petrobras advanced more than 3%, supported by higher energy prices and persistent concerns that oil flows through the Strait of Hormuz will not normalize in the near term.
