Argentine Markets Rally Significantly After President Milei's Midterm Election Triumph

Decisive Electoral Outcome Fuels Market Optimism

Argentine financial markets reacted with significant gains on Monday, October 27, 2025, following the resounding victory of President Javier Milei's La Libertad Avanza (LLA) party in the country's midterm legislative elections held on Sunday, October 26, 2025. The electoral triumph, which saw LLA secure over 40% of the national vote, has been widely interpreted as a strong mandate for Milei's radical free-market reforms and austerity measures, leading to a surge in investor confidence.

Stocks and Bonds Register Impressive Gains

The market's response was immediate and dramatic. The benchmark Merval index soared, with reports indicating a jump of over 20% at the start of trading, and closing with a 21% gain. Some analyses noted it was the index's biggest one-day jump in 30 years, climbing almost 32%. Dollar-denominated sovereign bonds also saw substantial increases. Argentina's 10-year government bond yields tumbled by 3.83 points to 14.34%, reflecting increased demand. Specific bonds, such as the 2030 bond, rose by 11 percentage points (a 15% gain), and the 2035 bond climbed by 12 points (a 22% gain), or as much as 14 cents during trading hours.

Peso Strengthens Amid Renewed Confidence

The Argentine peso, which had faced considerable devaluation pressures in the weeks leading up to the election, also experienced a significant rebound. The currency appreciated by a remarkable 9.5% against the dollar in early trading in Buenos Aires. It surged more than 10% on Monday, ultimately closing 3% higher at 1,460 pesos per dollar. This turnaround signals a newfound belief among investors in the currency's stability and the government's economic direction, contrasting sharply with previous anxieties over a potential Milei defeat.

Political Mandate and International Reactions

President Milei's La Libertad Avanza party secured approximately 40.8% of the nationwide vote, significantly outperforming the Peronist opposition, Fuerza Patria, which garnered around 31.7%. This victory is expected to bolster Milei's legislative power, with LLA more than tripling its representation in Congress. The party gained 64 seats in the lower house (up from 37) and 14 seats in the Senate (up from 6), providing a larger bloc to advance his ambitious reform agenda. Following the results, President Milei hailed the outcome as a 'tipping point' for Argentina. Internationally, US President Donald Trump congratulated Milei on his 'landslide victory,' acknowledging the US's support for the Argentine leader.