Argentina Stocks Fall as Risk Gauge Jumps | Argentina Market Report, Oct 30

Argentina's main stock index, the Merval, experienced its fifth consecutive drop on Friday, October 30, 2026, as risk assets suffered heavy losses across the market. The index fell by 2.59%, reaching 92,079 points from 94,530 the previous day. The country risk, or the extra yield investors demand for Argentine dollar bonds compared to US Treasuries, surged to 787 basis points, marking the highest close of 2026 and a 30% increase in October alone.

This jump in country risk was primarily driven by two external factors: the decline in Wall Street stocks due to doubts about artificial-intelligence spending, and Brazil's currency weakening after President Lula's re-election on October 25. Additionally, there was uncertainty about Argentina's ability to fund itself and rebuild reserves in 2027 while facing weak economic activity.

For US investors in Argentine shares, the rising country risk represents a more significant concern than the fluctuating peso, as it raises borrowing costs for both the state and companies.