FX.co ★ Ibovesba as Powell Signals September Rate Cut

On Friday, the Ibovespa surged by 2.1%, reaching over 137,000 points. This upswing mirrored movements in global markets following Federal Reserve Chair Jerome Powell's indication of a potential interest rate cut in September, due to weakening labor conditions in the United States. Generally, a reduction in US interest rates tends to relax global financial conditions, depreciate the dollar, and bolster commodities as well as emerging markets. Meanwhile, in Brazil, the political landscape and ongoing trade tensions with the US remained at the forefront. Key sectors saw gains, with major banks such as Itaú rising by 1.9% and Banco do Brasil by 1%, Vale increasing by 1.5%, retailers like Azza climbing by 2.6% and Magazine Luiza by 3%, and Petrobras edging up by 0.1%.