Brazil Stock Market Rises on Fed Rate Cut

The Ibovespa jumped 1.2% to trade above 145,500 on Wednesday after the Fed cut US interest rates by 25 bps, bringing them to 4.0–4.25%, in line with expectations.

New projections showed most Fed officials foresee at least two more cuts this year.

Meanwhile, Brazil’s central bank is expected to hold the Selic at 15%, its highest in nearly two decades, with policymakers signaling rates will remain steady for an extended period.

On the corporate front, banks rose (Itaú +1.6%, Bradesco +2.5%), retailers outperformed (Magazine Luiza +5.7%, Casas Bahia +13%), Petrobras gained 0.4%, while Vale slipped 0.3%.

US stocks gained traction on Wednesday after the Federal Reserve cut its key rates by 25bps, as largely expected, and penned two additional rate cuts for the rest of this year.

The S&P 500 was 03% up, while the Dow was nearly 500 points and the Nasdaq 100 erased losses to hover above the flatline.

Projections by the FOMC indicated that real growth and unemployment are better than expected in the June meeting, reflecting lesser concerns on the impact of tariffs despite recent unemployment data that pointed to lower job growth.

Markets were also supported by a single dissent among FOMC members.

Consumer staples and credit services, in addition to traditional sectors of the economy, were among the top gainers of the session with P&G, Phillip Morris, and American Express adding 2%.

On the other hand, Nvidia and Broadcom fell 2.5% and 4%, respectively, on reports that that China’s internet regulator had barred the country’s largest tech firms from purchasing the company’s AI chips.

The DAX is up 29.94 points or 0.13% today to 23359.18

• Up two of the past three trading days
• Off 4.85% from its record close of 24549.56 hit Wednesday, July 9, 2025
• Off 4.85% from its 52-week high of 24549.56 hit Wednesday, July 9, 2025
• Up 24.84% from its 52-week low of 18711.49 hit Wednesday, Sept. 18, 2024
• Rose 24.84% from 52 weeks ago
• Off 4.85% from its 2025 closing high of 24549.56 hit Wednesday, July 9, 2025
• Up 18.75% from its 2025 closing low of 19670.88 hit Wednesday, April 9, 2025
• Month-to-date it is down 2.27%
• Year-to-date it is up 3450.04 points or 17.33%

Source: Dow Jones Market Data, FactSet

The DAX is up 29.94 points or 0.13% today to 23359.18

• Up two of the past three trading days
• Off 4.85% from its record close of 24549.56 hit Wednesday, July 9, 2025
• Off 4.85% from its 52-week high of 24549.56 hit Wednesday, July 9, 2025
• Up 24.84% from its 52-week low of 18711.49 hit Wednesday, Sept. 18, 2024
• Rose 24.84% from 52 weeks ago
• Off 4.85% from its 2025 closing high of 24549.56 hit Wednesday, July 9, 2025
• Up 18.75% from its 2025 closing low of 19670.88 hit Wednesday, April 9, 2025
• Month-to-date it is down 2.27%
• Year-to-date it is up 3450.04 points or 17.33%

Source: Dow Jones Market Data, FactSet

The FTSE 100 Index is up 12.71 points or 0.14% today to 9208.37

• Largest one day point and percentage gain since Thursday, Sept. 11, 2025
• Snaps a three trading day losing streak
• Off 1.21% from its record close of 9321.40 hit Friday, Aug. 22, 2025
• Up 45.29% since the pre-Brexit vote level of 6338.10 hit Thursday, June 23, 2016
• Off 1.21% from its 52-week high of 9321.40 hit Friday, Aug. 22, 2025
• Up 19.91% from its 52-week low of 7679.48 hit Wednesday, April 9, 2025
• Rose 11.57% from 52 weeks ago
• Off 1.21% from its 2025 closing high of 9321.40 hit Friday, Aug. 22, 2025
• Up 19.91% from its 2025 closing low of 7679.48 hit Wednesday, April 9, 2025
• Month-to-date it is up 0.23%
• Year-to-date it is up 1035.35 points or 12.67%

Source: Dow Jones Market Data, FactSet

In Milan, the FTSE MIB Index dropped 550 points or 1.29 percent on Wednesday.

Losses were led by MFE-MediaForEurope (-5.99%), Banca Generali (-3.63%) and UniCredit (-3.54%).