On Wednesday, February 18, the dollar opened lower, reflecting a reversal from the previous Friday’s highs as Brazilian markets resumed after the extended Carnaval holiday. The dollar was down by 0.20% trading at R$ 5.218, while Brazil's main stock index, the Ibovespa, fell by 0.27% to 185,958 points due to the pressure from Vale, one of the country’s largest mining companies.

Vale's stock declined by 2.64% after revealing a significant 56% drop in profits for 2025, reported at R$ 13.8 billion. The company attributed this decline to increased provisions and accounting issues, compounded by a substantial loss of R$ 21 billion in the fourth quarter. The negative performance of Vale has had a noticeable impact on broader market sentiments, highlighting investors' wariness about corporate earnings amidst fluctuating economic conditions.

Meanwhile, U.S. stock indices showed signs of recovery in the morning, particularly in the tech sector after a recent slump, as investors eagerly awaited the release of minutes from the Federal Reserve’s last meeting. These developments portray a mixed financial landscape, suggesting caution among investors in both Brazilian and international markets as they navigate post-Carnaval trading and the implications of forthcoming U.S. economic policy updates.