The Ibovespa lost 0.6% to close at 177,284 on Friday, pressured by a negative external backdrop amid fears of rising global inflation, while investors also monitored domestic political developments. Concerns linked to the Middle East conflict pushed global bond yields higher, while oil prices advanced amid the lack of progress toward ending ship attacks and seizures around the Strait of Hormuz, reinforcing stagflation fears. Brazil’s 10-year government bond yield climbed to its highest level in over a year. Locally, sentiment was also weighed by reports linking Senator Flávio Bolsonaro to former Banco Master owner Daniel Vorcaro, who was charged with fraud. Major banks posted losses, with Itaú down 1.7% and Bradesco shedding 1.2%. Eneva fell 3.4% despite strong first-quarter results, while Marfrig closed flat after releasing solid earnings. In contrast, Petrobras gained 1% as higher oil prices supported energy shares.

Ibovespa Falls as Inflation and Political Concerns Weigh

The Dow Jones Index fell 537 points or 1.07 percent on Friday to close at 49526 points. Leading the losses are Nvidia (-4.39%), Boeing (-3.74%) and Caterpillar (-3.42%).

The Dow Jones Index Closes 1.07% Lower

The S&P/TSX Composite Index fell 1.3% to close at 33,833 on Friday, pressured by losses in the mining sector and a global bond market selloff. Global bond yields surged as signs of economic strain from the Iran conflict and rising oil prices fueled concerns over faster interest rate hikes by major central banks and weaker economic growth. Canada’s 10-year government bond yield climbed to its highest level in about two years. Financial shares also traded lower, with Brookfield down 4%. Mining stocks led losses as higher Treasury yields and a stronger US dollar weighed on gold prices and reduced the appeal of precious metals producers. Agnico Eagle fell 6.2%, Barrick lost 5.8%, and Wheaton Precious Metals shed 6.1%. Meanwhile, energy shares advanced as oil prices rose after comments from Donald Trump and Iran’s foreign minister further weakened hopes for a deal to end attacks and ship seizures around the Strait of Hormuz. Canadian Natural gained 1.2% and Suncor added 2.5%.

TSX Falls as Bond Selloff Hits Mining Stocks

Stocks fell sharply on Friday as rising US Treasury yields and weakness in technology shares weighed on sentiment after a summit between President Donald Trump and Chinese President Xi Jinping ended without major policy breakthroughs. The S&P 500 lost 1.2%, the Nasdaq Composite dropped 1.5% and the Dow Jones fell 1.1%. Investors took profits in the technology sector following strong recent gains. Intel declined 5%, while Advanced Micro Devices and Micron Technology fell 3% and 4%, respectively. Nvidia lost 2%, and Cerebras Systems dropped 4% after surging 68% in the previous session following its Nasdaq debut. Microsoft outperformed, rising 4% after Bill Ackman revealed that Pershing Square had built a position in the company. Boeing shares also extended losses, falling 3% after dropping nearly 5% a day earlier, as investors reacted negatively to Trump’s announcement that China agreed to purchase 200 Boeing jets, only modestly above prior expectations.

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Ibovespa Falls as Inflation and Political Concerns Weigh

The Dow Jones Index Closes 1.07% Lower

TSX Falls as Bond Selloff Hits Mining Stocks

US Stocks Fall Sharply