Brazil election shock sends this BlackRock stock crashing over 20%

Nu Holdings (NYSE: NU ) plunged more than 20% in premarket trading on Monday after Brazil’s presidential election delivered a surprise victory for incumbent Luiz Inácio Lula da Silva, triggering a broad sell-off in Brazilian stocks. The digital banking company’s shares fell to approximately $11.75, down 22.49% from Friday’s closing price of $15.16, as investors reassessed the outlook for Latin America’s largest economy. The sell-off followed Lula’s victory over right-wing challenger Flávio Bolsonaro, who had led the first round of voting on October 4. Investors had largely anticipated a Bolsonaro win, expecting his administration to pursue tighter fiscal policies and reforms to improve Brazil’s economic outlook. However, Lula secured 51.8% of the vote against Bolsonaro’s 48.2%, according to Brazil’s electoral authorities. Bolsonaro subsequently refused to concede, challenging the result.

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