---
symbol: "EWZ"
name: "iShares MSCI Brazil ETF"
date: 2026-10-26
change_pct: -31.2559880573071
direction: "down"
event_type: "geopolitical"
url: "https://perplo.app/why/EWZ/2026-10-26"
updated_at: 2026-10-26T13:06:38.418Z
---

# Why iShares MSCI Brazil ETF (EWZ) fell 31.26% on October 26, 2026

iShares MSCI Brazil ETF (EWZ) fell 31.26% on October 26, 2026 — Lula's win sends Brazil real and EWZ tumbling.

## What happened

Brazil's real plunged more than 8% in spot trading after Lula won the presidential election, and the Bovespa futures extended losses to nearly 20%.

## Why it moved

A Lula win raises the market's expectation of looser fiscal policy and higher state influence, which lifts Brazil's risk premium.

## Why it matters

Brazil sits at the center of the EM Rotation trade, where capital moves between emerging markets on policy credibility and currency direction.

## What would break the thesis

The move unwinds fast if markets see policy continuity or if Lula's early fiscal signals stay moderate, since a sharp recovery in the real would pull EWZ back.

## Sources

- [BRAZIL'S REAL SLUMPS MORE THAN 8% IN SPOT TRADING ON LULA WIN](https://t.me/marketfeed/1064215) — MarketFeed
- [BRAZIL'S BENCHMARK STOCK INDEX BOVESPA FUTURES EXTEND LOSSES AFTER LULA WINS, LAST DOWN NEARLY 20%](https://t.me/marketfeed/1064224) — MarketFeed
- [BRAZIL'S REAL FUTURES SINK ON LULA WIN, HIT TRADING LIMIT](https://t.me/marketfeed/1064213) — MarketFeed

---

Trade EWZ perpetual futures 24/7 onchain: https://perplo.app/asset/EWZ