Stock Market Today, Oct. 7: Itaú Unibanco Falls on Profit-Taking After Brazil Election Rally

Itaú Unibanco (ITUB) dropped 4.04% to $9.74 on October 7, 2026, as traders locked in gains after the stock hit a five-year high following Brazil's presidential election first round.

The selloff followed a rally sparked by conservative candidate Flávio Bolsonaro's stronger-than-expected first-round showing. That result lifted expectations for Brazilian bank earnings and pushed ITUB to its multi-year peak. Profit-taking set in once the stock reached that level.

The trigger for the pullback is the pending runoff, which will determine the final outcome. Investors are choosing to bank gains rather than hold a full position through the second round.

Interpretation: a 4.04% single-session drop right after a five-year high reads as a positioning reset rather than a rejection of the earnings thesis. The article ties the rally to election-driven expectations, so ITUB's price now carries a political premium that the runoff could either validate or erase. The same dynamic may extend to other Brazil-exposed financials, though the source names only ITUB as moving.