The Ibovespa fell more than 1% to trade below 175,500 on Wednesday as investors digested stronger-than-expected Brazilian labor market data and the Federal Reserve's policy decision. Brazil created a net 145,161 formal jobs in June, above market expectations of 115,000, reinforcing the resilience of the labor market and supporting expectations for a more hakwish BCB. The Fed left interest rates unchanged, as expected, though three FOMC members favored a rate hike, adding to concerns that global rates could remain higher for longer. Financials posted declines, with Itau and Bradesco down 2%, Itausa losing 1.5%, and B3 falling 3%. Santander tumbled 7% after missing ROE expectations, while Axia lost more than 1% and Sabesp fell nearly 4%. Ambev erased earlier gains to trade 1% lower after its earnings-driven rally, while Vivo and TIM extended recent losses. Meanwhile, Petrobras added 2% on rising oil prices.