Stock Futures, Treasurys Steady as Brazilian Assets Slide

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, October 26, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

Brazilian financial assets experienced a significant sell-off Monday after Luiz Inacio Lula da Silva secured an unexpected second-round victory over Flavio Bolsonaro, causing front-month real futures to drop more than 10% against the dollar and a basket of Brazilian stocks to fall over 27% in premarket trade. European equities with substantial Brazilian exposure, including Spanish bank Santander, also declined, with Santander shares dropping more than 5%. ING economist Chris Turner noted that investors are now facing Lula’s campaign pledges, such as a shorter working week, rather than the fiscal consolidation associated with Bolsonaro.

Background

• U.S. stock futures remained largely steady, with Dow Jones Industrial Average and S&P 500 contracts rising by 0.5% and 0.3%, respectively, while 10-year Treasury yields held below 5%.
• Cloud-computing stocks faced continued pressure, with CoreWeave shares falling 2.55% premarket, following comments from Elon Musk on X regarding lender withdrawal and inevitable sector consolidation.
• Oil prices stayed elevated despite early Monday pullbacks, with Brent crude for December delivery trading at $114.40 per barrel and West Texas Intermediate holding above $100.
• President Trump told Fox News on Sunday that he is nearing a decision on whether to finalize a deal with Tehran or end the conflict.

Read the full article at wsj.com

More from Monday, October 26: