Lula’s Fourth-Term Victory Triggers Massive Brazilian Sell-Off and Neocloud Panic
Luiz Inácio Lula da Silva has won an unprecedented fourth term as Brazil’s president, triggering a severe market sell-off. The iShares MSCI Brazil ETF dropped over 20% overnight, with major local firms like Petrobras and Itaú Unibanco falling between 19% and 30%. Simultaneously, Elon Musk’s warning about 'guppy-level death' for neocloud companies sent shares of CoreWeave, Nebius, and IREN lower in premarket trading. While Lula’s victory challenges market-friendly fiscal expectations, the neocloud sector faces ongoing distress due to high debt levels and skeptical credit investor yields.