Milei’s Win Reignites Investor Confidence in Argentina
Investors cheer as Javier Milei’s reform mandate tightens his grip on Congress and rescues Argentina from the brink of financial collapse.
Argentina has witnessed a market rally that stunned even the most seasoned investors. After months of uncertainty and fear of another financial meltdown, President Javier Milei’s party delivered a resounding victory in Sunday’s legislative elections, triggering an electric rebound across Argentina’s financial landscape.
The nation’s dollar bonds soared, with notes due in 2035 jumping by 14 cents to over 71 cents on the dollar. The peso, which had been sliding dangerously, suddenly leapt 10 percent. The Buenos Aires stock market erupted with a 23 percent surge, its biggest one-day rally since Milei first rose to power in November 2023. The markets, long gripped by anxiety and skepticism, were suddenly breathing again.
For investors, it was the confirmation they needed that Milei’s reformist drive wasn’t about to be derailed. His party’s unexpected 41 percent share of the vote secured crucial legislative strength, calming fears that Argentina would return to its old populist habits and plunge back into crisis.
The sharp recovery reversed weeks of decline that had seen Argentina’s assets pummeled amid fears of political paralysis. Global investors had been dumping pesos and bonds, betting that Milei’s austerity measures and scandals would cost him political capital. The mood was grim enough that the Trump administration intervened, buying pesos to stabilize Argentina’s currency as its central bank burned through reserves to prop up the exchange rate.

