Ibovespa Hits Record High Again: Index Surges Past 149,000 Points Amid Fiscal Optimism and Global Market Moves
- What's Driving Ibovespa's Record Rally?
- Which Stocks Are Leading the Charge?
- How Are Currency Markets Reacting?
- What's Happening in Global Markets?
- Frequently Asked Questions
Brazil's benchmark Ibovespa index continues its record-breaking streak, surpassing 149,000 points for the fourth consecutive session as investors cheer domestic fiscal developments and react to global market movements. The bullish momentum comes alongside surprising inflation data, strong corporate earnings, and shifting expectations around US monetary policy - creating a perfect storm for Brazilian equities. Here's why traders are rushing into Latin America's largest stock market.
What's Driving Ibovespa's Record Rally?
The Ibovespa (IBOV) smashed through another intraday record on Thursday (October 30, 2025), reaching 149,234.04 points by noon Brasília time - a 0.40% gain that builds on Wednesday's previous high of 149,067.16 points. This marks the fourth straight session where Brazil's main stock index has set new historic highs, something we haven't seen since the pre-pandemic boom years.
Market analysts point to three key catalysts: First, the Chamber of Deputies approved fiscal measures expected to generate R$25 billion for public coffers. Second, better-than-expected inflation data showed Brazil's IGP-M index (the "rent inflation" benchmark) fell 0.36% in October versus forecasts of just 0.22% decline. Third, global risk appetite improved after the US and China reached a tentative trade agreement.
"The fiscal agenda is gaining momentum in Congress with approval of some spending containment measures to preserve fiscal results," notes Rafael Passos, analyst at BTCC. "Lawmakers are strategically distributing measures across different bills to avoid backlash from direct tax hikes."
Which Stocks Are Leading the Charge?
MBRF3 shares stole the show with over 6% gains, rebounding sharply after Wednesday's 7.84% drop. The meat processor continues riding high on its new Halal food joint venture with Saudi Arabia's sovereign wealth fund - the stock has gained 20.6% just this week.
Beverage giant Ambev (ABEV3) also shined after reporting Q3 2025 adjusted net income of R$3.84 billion, up 7.4% year-over-year. On the flip side, Bradesco (BBDC4) led decliners despite posting expected earnings growth of 18.8% - proof that even good results can disappoint when valuations get stretched.
Heavyweights Vale (VALE3) and Petrobras (PETR4) both advanced too, with Vale benefiting from iron ore price gains ahead of its earnings report and Petrobras tracking Brent crude's recovery.
How Are Currency Markets Reacting?
The US dollar gained ground globally after the Federal Reserve's expected 25-basis-point rate cut came with hawkish signals about pausing the easing cycle. By 12:40 PM Brasília time, the DXY index ROSE 0.31% to 98 points.
Against the Brazilian real, the greenback followed the external trend, trading at R$5.3831 (+0.44%). Currency traders are closely watching whether Brazil's central bank will maintain its own easing cycle amid global monetary policy divergence.
What's Happening in Global Markets?
Wall Street showed mixed reactions to the Fed decision and US-China trade news. The S&P 500 fell 0.51% while the Dow gained 0.39% as tech stocks (particularly Meta after its earnings miss) weighed on the Nasdaq's 1.17% decline.
European markets dipped after the ECB held rates steady at 2% without signaling future moves. Asian markets closed mixed, with Japan's Nikkei inching up 0.04% to another record while Hong Kong's Hang Seng slipped 0.24%.
Frequently Asked Questions
Why is Ibovespa hitting record highs?
The index is benefiting from domestic fiscal optimism, better-than-expected inflation data, strong corporate earnings, and improved global risk appetite after the US-China trade agreement.
Which Ibovespa stocks performed best today?
MBRF3 (+6%) and Ambev (ABEV3) led gainers, while Bradesco (BBDC4) was the main laggard despite reporting earnings growth.
How did the Fed decision impact markets?
The expected 25bps rate cut actually strengthened the dollar as Chair Powell signaled a potential pause in the easing cycle, causing markets to recalibrate expectations.
What's next for Ibovespa?
All eyes are on Vale's earnings report due after market close and whether the index can sustain its record-breaking momentum into November.
