The Ibovespa rose 1.3% to close at 179,722 on Tuesday, extending its winning streak to 10 sessions as investors renewed expectations for continued Selic easing. Brazil’s GDP grew 0.5% in the second quarter of 2026, more than expected, but weaker details pointed to fading economic momentum despite a tight labor market and short-term demand stimulus measures. The data reinforced the view that high interest rates have already slowed activity and could leave room for further cuts by the Banco Central do Brasil. Major banks advanced, including Banco do Brasil, Bradesco and Itaú. B3 gained 2.5% despite lower broker estimates after its buy recommendation was maintained. Petrobras jumped 4.1% on higher oil prices and another monthly production record in July, while Casas Bahia surged 36.4%, taking its two-session gain to 125% after confirming the anticipated effects of its judicial reorganization filing.