Brazil's Lula pulled off a historic comeback to beat Flávio Bolsonaro in the runoff, a result cheered by markets-watchers wary of another far-right government but a blow to business elites who had bet on a Bolsonaro win.

• Lula trailed after the first round but won the runoff decisively as turnout surged, marking the first comeback win of its kind in Brazil's history.
• He leaned into populist moves—targeting younger and women voters, a new social-media push, and promises like debt relief and a shorter work week—to close the gap.
• Investors had been pricing in a Bolsonaro win; when Lula won instead, Brazil's currency and stock market both dropped sharply in a rare, outsized reaction.
• Lula still faces a conservative Congress and hostile state governments, so governing will be harder than winning was.

Outlook: Expect near-term market jitters in Brazil to fade as attention shifts to whether Lula can push his spending and welfare agenda through a hostile legislature.