Brazilian President and presidential candidate Luiz Inacio Lula da Silva waves a national flag during a campaign rally in Sao Paulo, Brazil, September 26, 2026.
Miguel Schincariol | Afp | Getty Images
Luiz Inácio Lula da Silva won a fourth term as president of Brazil, overcoming a first-round deficit to beat Senator Flávio Bolsonaro in a runoff that divided the country almost evenly.
Lula obtained 51.8% of valid votes, compared to 48.2% for Bolsonaro, according to the Superior Electoral Court, and almost all the ballots were counted.
This remarkable return to the presidency of Brazil was also the first time since the return of direct elections in 1989 that a candidate won the runoff after losing in the first round.
The electoral process was, however, marred by allegations of voter suppression, with Lula’s campaign citing the suspension of public transport in some key areas, prompting the court to extend voting by two hours. Bolsonaro’s campaign had also requested an extension, citing heavy rains that closed polling stations in the south, a right-wing stronghold.
The victory of the 80-year-old leftist, who was behind in the first round, blocks a rightward shift in Latin America that US President Donald Trump has supported. Lula is expected to govern from 2027 to 2030, facing a Congress where Bolsonaro’s Liberal Party occupies the largest position in decades, and with a significant public debt that he must stabilize.
Brazil, under Lula’s leadership, is grappling with a widening budget deficit and growing public debt due to high interest rates, rigid mandatory spending and debt stress faced by businesses.
The iShares MSCI ETF (EWZ), which tracks Brazilian stocks, plunged nearly 20% overnight following Lula’s victory.
Lula’s victory came on the same day that Serbia’s longtime strongman Aleksandar Vucic conceded defeat in parliamentary elections to the student-led opposition movement, ending 14 years of leadership.
iShares MSCI Brazil ETF (EWZ)
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