Brazil’s benchmark Ibovespa index fell 1.52% to close at 174,042 points on Friday, reversing the momentum from earlier in the week.
The decline was driven by losses in heavyweight constituents Petrobras and Vale, which dragged the broader market lower despite relative stability in the currency market.
44% to 177,548 points, marking its most significant single-day advance in recent weeks.
The real remained largely unchanged, trading near 5.09 per dollar.
The pullback follows a strong session on Wednesday, when the Ibovespa surged 2.44% to 177,548 points, marking its most significant single-day advance in recent weeks. That rally was supported by a firmer real, which had tightened to 5.0546 per dollar, but Friday’s selling suggests profit-taking or renewed risk aversion among investors exposed to commodity-linked equities.
The volatility underscores the sensitivity of Brazilian equities to shifts in commodity sentiment and domestic political risk.
While the real’s stability indicates that currency markets are not yet pricing in a broader crisis, the divergence between the index and the currency highlights specific pressure on the mining and energy sectors.