Milei Wins; Markets Rally After U.S. Backing

Argentina’s libertarian president Javier Milei won about 41% in Sunday’s midterms, dramatically expanding La Libertad Avanza’s congressional delegation and giving him the legislative strength to protect vetoes and press free‑market reforms. The result followed a roughly $40 billion U.S.-backed support package — including a $20 billion currency swap and matched financing — that the Trump White House publicly tied to Milei’s electoral success. Markets rallied on the outcome: the peso jumped, Argentine equities and the ARGT ETF rose double‑digits, and dollar bonds tightened as perceived sovereign risk fell. Supporters say the victory renews a path to fiscal consolidation, deregulation and regained market access, while critics accuse U.S. intervention of being heavy‑handed and politically contentious. Milei’s ability to translate the mandate into durable recovery depends on forming political alliances, sustaining fiscal discipline, timely reforms and continued external financing.