The Ibovespa fell 0.6% on Friday to close at 179,365, its lowest level in more than a month, as escalating tensions in the Middle East and weak US employment data intensified concerns about global stagflation. Rising energy prices prompted a rotation out of interest-sensitive and cyclical stocks, while higher domestic yields added pressure to credit markets.
Major banks came under selling pressure, with Banco do Brasil, Santander, Bradesco, and Itaú declining between 1.3% and 2.3%, as the broader financial sector priced in the prospect of tighter lending conditions. Key industrial names also retreated, including Vale, which dropped 3.4%, and Embraer, down 7.8%, reflecting a reduced appetite for growth-oriented assets.
In contrast, Petrobras advanced 4.6%, supported by higher international oil prices and solid earnings. Rede D'Or also recorded gains after formalizing a settlement agreement that resolved long-standing legal disputes with the Nossa Senhora de Lourdes fund.
