Bovespa index ends session up 1.79% at 139,000 points, highest closing level ever

Bovespa index ends session up 1.79% at 139,000 points, highest closing level ever

The Bovespa index closed at 139,000 points on Monday, May 14, 2025, marking the highest closing level ever recorded for the Brazilian stock market. This significant milestone was driven by a combination of factors, including strong corporate earnings reports, favorable macroeconomic data, and global risk appetite.

The financial sector led the charge, with notable gains in key players such as Bradesco, B3, Ambev, and Itaú. Bradesco's stock jumped 14.9% after exceeding first-quarter earnings estimates, while B3 rallied 9.1% on record trading volumes. Ambev added 1.0%, and Itaú gained 1.0% following similarly strong quarterly reports. Petrobras also contributed to the market's rise, rising 2.2% on firmer oil prices and news that senior U.S. and Chinese trade envoys will meet in Switzerland, bolstering hopes for tariff relief.

Domestically, the Central Bank of Brazil's (Copom) 50 basis points increase in the Selic rate to 14.75% underscored a commitment to sustained monetary restraint. The Federal Reserve held rates steady but warned that fresh U.S. tariffs could intensify inflationary pressures and labor-market strains, adding a note of caution despite improving global risk appetite.

The Bovespa index has been on a strong upward trajectory, with the main stock market index in Brazil (IBOVESPA) increasing 15,949 points or 13.26% since the beginning of 2025. This upward trend is part of a broader five-week winning streak, with the index up 1378 points or 1.02% this week alone. The index has also seen its largest two-day point and percentage gain since Thursday, April 24, 2025, and is up eight of the past 10 weeks [2].

Looking ahead, the Brazil Stock Market (BOVESPA) is expected to trade at 132,971.86 by the end of the current quarter and at 126,688.13 in 12 months' time, according to Trading Economics global macro models and analyst expectations [1].

References:
[1] https://tradingeconomics.com/brazil/stock-market
[2] https://www.morningstar.com/news/dow-jones/2025050910540/bovespa-index-ends-the-week-102-higher-at-13651188-data-talk