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In the span of three weeks, Brazilian hedge-fund managers went from celebrating some of their biggest gains in years to nursing steep losses and issuing mea culpas to their clients.

The wipeout Monday in Brazilian markets dragged down nearly every stock in the benchmark Ibovespa index. More than half of them plunged at least 10%.

Brazilian markets cratered, with the currency and the benchmark stock index quickly racking up losses of more than 10%, as the surprise re-election of leftist President Luiz Inácio Lula da Silva blew up the bullish wagers that investors had made on the country in recent weeks.

Wall Street strategists who recommended loading up on Brazil assets after Flávio Bolsonaro emerged as the frontrunner for president are about to see if they led clients astray or to profits ahead of Sunday’s too-close-to-call runoff.

Investor jitters are kicking in ahead of Brazil’s presidential election runoff, sending the cost of hedging surging.

Brazilian hedge-fund managers who outperformed by positioning for a strong showing by right-wing candidate Flávio Bolsonaro in the first round of the presidential election are fine-tuning derivatives bets that soared on Monday’s historic rally in local markets.

Brazilian assets surged on expectations that Flávio Bolsonaro will address the country’s mounting fiscal problems and pave the way for interest-rate cuts after he became the surprise favorite to win the presidency in an Oct. 25 runoff against Luiz Inácio Lula da Silva.

Investors eager to trade on a Brazilian election that’s too close to call are prioritizing derivatives over outright bets after market favorite Flávio Bolsonaro gained ground on President Luiz Inácio Lula da Silva.

Investors are piling into bullish options tied to Brazilian stocks, getting ready for a potential rally ahead amid signs the upcoming presidential race will be tighter than expected.

The worst trading outage ever in Brazilian financial markets was just the latest disruption over the past year to bedevil investors in Latin America’s biggest economy.

Federal Reserve Bank of St. Louis President Alberto Musalem said that with inflation running above the central bank’s 2% target, policymakers cannot afford to tolerate higher inflation while they wait for the possibility of stronger productivity growth.

Weeks hearing key advisers to Brazil’s leading presidential candidates talk about their plans for Latin America’s largest economy have only deepened investor concerns about the outlook for the nation’s rapidly rising debt burden.

A Brazilian Supreme Court justice ruled that Jair Bolsonaro can remain under house arrest, extending a 90-day stint that had been granted due to the former president’s deteriorating health.

When Brazil faces Japan in the World Cup early Monday afternoon, operators of the country’s power grid will have another concern in mind: keeping the system stable as millions of Brazilians step away from factories, offices and stores to gather in front of TVs.

Brazil’s most prominent conservative family is feuding again, posing fresh risks to the presidential candidacy of Flávio Bolsonaro just when it seemed he had an opening to hit leftist leader Luiz Inácio Lula da Silva.

Former First Lady Michelle Bolsonaro signaled she plans to remain on the sidelines of Flávio Bolsonaro’s presidential campaign after what she described as a disrespectful phone call with her stepson, exposing fresh tensions within the family at the center of Brazil’s right-wing opposition to President Luiz Inácio Lula da Silva.

The Brazilian Senate leader from President Luiz Inácio Lula da Silva’s party stepped down from his post after a police investigation uncovered connections to failed lender Banco Master.