Why Did the Stock Market Rise Despite the Brake on GDP that Removed Brazil from the Group of Top 10 Economies?

Despite data indicating an economic slowdown in the country, the São Paulo Stock Exchange, B3, set a new record yesterday, the 31st of the year. Since January, the Ibovespa, the main index of B3, has increased by 36%. Yesterday, the index closed at 164,468 points, the highest in history, with a 1.68% increase. Analysts attribute the new record to the prospect of interest rate cuts in Brazil soon, according to investors’ interpretation. This movement was accelerated by the third-quarter Gross Domestic Product (GDP) data released on Thursday, revealing a slowdown in economic activity due to the restrictive benchmark interest rate (Selic) currently at 15% per year.