25.08.202513:27:58UTC+00Ibovespa Rises as Fed Signals Cuts and Lula Unveils Credit Plan

On Monday, the Ibovespa index experienced a 0.4% rise, climbing above the 138,500 mark. This increase mirrored global market trends as investors factored in the likelihood of further interest rate cuts in the United States. Federal Reserve Chair Jerome Powell's dovish remarks at the Jackson Hole conference heightened expectations for a rate reduction in September. Futures markets are now indicating an 84% probability of a 25 basis point cut, with the possibility of a full percentage point reduction by mid-2026, potentially adjusting rates to the 3.25%–3.5% range.

Domestically, focus turned to significant government developments. President Lula is set to announce a new Industry 4.0 credit initiative at the Planalto Palace, joined by Vice President Geraldo Alckmin and Finance Minister Fernando Haddad. In addition, Alckmin will conclude the Brazil-Nigeria Business Forum. Meanwhile, Agrarian Development Minister Paulo Teixeira will introduce new policies regarding public food procurement, aimed at supporting companies affected by U.S. tariffs.

On the corporate stage, Brazilian banks saw gains, including Itaú, which rose by 0.4%, and Bradesco, which surged by 2.9%. Other notable increases included Petrobras with a 0.2% rise, Vale with a 0.8% increase, and WEG jumping by 4.4%.