The Ibovespa fell 0.2% to close at 123,923 on Friday, pressured by expectations of a more hawkish stance from Brazil's central bank amid a robust labor market.

Brazil's unemployment rate averaged 7.1% in the three months leading up to May 2024, the lowest level since January 2015, and down from 7.5% in the previous three-month period.

This figure beat market expectations of 7.3%, providing the central bank with more room to maintain restrictive rates to tackle elevated inflation.

In the market, the consumer discretionary sector saw declines, with Ambev, Magazine Luiza, and Localiza falling by 0.4%, 1.2%, and 2.4%, respectively.

The meat processing sector also retreated, led by heavyweight JBS, which shed 0.7%.

On a positive note, iron ore giant Vale rose by 1.3%.

The Ibovespa saw a significant 8.1% drop in the first half of 2024.

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