Argentina’s financial markets responded with a strong rally following the decisive success of President Javier Milei’s party in this week’s legislative elections.

Government bonds rallied sharply, the peso gained more than eight percent against the U.S. dollar, and the domestic stock index jumped around twenty percent.

The governing party, La Libertad Avanza, garnered roughly forty‐one percent of the vote nationwide and secured a dominant share of seats in the lower house and Senate, a performance far stronger than most analysts had predicted.

The result reinforced investor confidence that Milei will retain the political mandate needed to advance his market-oriented reform programme and maintain the crucial financial backing pledged by the United States.

Yields on Argentina’s dollar-denominated sovereign debt dropped significantly — several bonds moved up by more than ten to fifteen cents in early trading — as traders interpreted the election outcome as a de-risking event for a country that has long suffered from fiscal and currency instability.

The peso’s sharp appreciation followed heavy depreciation in recent weeks amid concerns over Milei’s political standing and whether his reform path would continue.

Investors had feared the reform momentum might stall and that Argentina’s ability to service its roughly eighteen billion-dollar foreign-currency debt (coming due next year) could be compromised.

Milei’s victory speech emphasised cooperation and political stability, signalling a willingness to work with opposition legislators — a tone that helped soothe markets.

U.S. Treasury Secretary Scott Bessent earlier affirmed Washington’s support for Argentina, including a twenty-billion-dollar currency-swap line and further financing contingent on reform progress.

For Argentina, the election outcome marks a significant moment.

With greater legislative leverage, the government now has improved prospects for delivering on labour, tax and currency-control reforms.

But analysts caution that the macroeconomic fundamentals — including limited reserves, elevated inflation and deep structural challenges — still require effective execution and follow-through.

The results may have turned sceptics into cautious optimists, but sustained improvement will depend on whether reforms translate into tangible growth and stability.

As markets celebrated today, attention now turns to how swiftly and credibly the Milei administration can implement the reform agenda and rebuild confidence in Argentina’s economy.