# Brazilian Stocks Tumble After Lula Wins Fourth Term

> Lula's surprise fourth term triggers 25% drop in Nu Holdings, 21% in Petrobras, and 15% in MercadoLibre.
- Title: Brazilian Stocks Tumble After Lula Wins Fourth Term | Shortify
- Summary: Lula's surprise fourth term triggers 25% drop in Nu Holdings, 21% in Petrobras, and 15% in MercadoLibre. Lula's election victory causes Brazilian stocks to…
- Keywords: lula, brazil, nu holdings, petrobras, mercadolibre, brazilian stocks, election, fiscal policy, Brazilian, Stocks, Tumble, Wins
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/10/26/brazilian-stocks-tumble-as-lula-wins-surprise-fourth-term-nu-holdings-sinks-25-petrobras-tumbles-21-mercadolibre-drops-15
- Author: David Moadel
- Published: 2026-10-26T13:22:06+00:00
- Read time: 1 min
- Topics: lula, brazil, nu holdings, petrobras, mercadolibre, brazilian stocks, election, fiscal policy
## Lula's Surprise Fourth Term
Lula won Brazil's presidential runoff against Senator Flávio Bolsonaro, securing a fourth term.

> Lula's surprise return to Brazil's presidency blindsided investors who had positioned for the opposite outcome
## Nu Holdings Plummets 25%
Nu Holdings stock falls 25% to $11.30 in morning trading, marking the market's toughest verdict on Brazil's financial-services outlook.

> Nu Holdings ( NYSE:NU | NU Price Prediction ) stock is down 25% to $11.30 in morning trading
## Petrobras Slides 21%
Petrobras stock drops 21% to $20.54, trailing Nu Holdings as the state-controlled oil producer faces fresh questions about government influence.

> Petrobras ( NYSE:PBR ) stock is sliding 21% to $20.54, trailing only nu holdings among the three companies
## MercadoLibre Drops 15%
MercadoLibre shares fall 15% to $1,545, a smaller decline than either Nu Holdings or Petrobras.

> MercadoLibre ( NASDAQ:MELI ) shares are falling 15% to $1,545, a smaller decline than either nu holdings or petrobras
## Brazil's Market ETF Falls 28%
The iShares MSCI Brazil ETF drops 28% to $30.66, a deeper slide than any of the three companies.

> the iShares MSCI Brazil ETF ( NYSEARCA:EWZ ) is down 28% to $30.66, a deeper slide than any of the three companies
## Investors Positioned for Bolsonaro
Investors had largely positioned for a Bolsonaro win and the economic reforms it was expected to bring.

> Investors had largely positioned for a bolsonaro win and the economic reforms it was expected to bring
## Lula's Win Raises Fiscal Concerns
Lula's win stokes fears of further tax hikes and heavier regulation on Brazilian lenders, impacting Nu Holdings.

> Lula's win stokes fears of further tax hikes and heavier regulation on brazilian lenders
## Petrobras Faces Policy Risks
Petrobras is sensitive to presidential influence with fears of renewed state intervention, fuel-price controls, and higher taxation.

> Petrobras is brazil's state controlled integrated oil company with the national government as its controlling shareholder
## Key takeaway

Lula's election victory causes Brazilian stocks to fall sharply as investors fear policy shifts and fiscal impacts.