Brazilian markets rose on Monday after far-right presidential candidate Jair Bolsonaro ran up a huge lead in the first round of voting, boosting investors' hopes that he will tackle a growing fiscal deficit and privatize key companies.
"He needs to say, 'Yes, we were culprits in this massive corruption scandal; we deeply, deeply regret what happened to Brazil, but we need to move on, ' " she said. "Bolsonaro is openly anti-democratic, denigrates minorities and several of his supporters may take his victory as an authorization to attack [verbally or physically] their opponents", he said. His grassroots social media campaign electrified the PSL, pushed it further to the right and raised the profile of candidates such as Olimpio Gomes, a former military police major, the most-voted candidate for the Senate in São Paulo Sunday.
Meanwhile, true to the Workers' Party's leftist roots, Haddad has promised to fight long-standing inequalities, scrap a major labor reform passed past year and invest more in education. Second-place Fernando Haddad finished on 28 percent.
Polls predicted Mr Bolsonaro would come out in front on Sunday, but he far outperformed expectations, blazing past competitors with more financing, institutional backing of parties and free air time on television. Ultimately, defending Lula damaged the left-wing camp, as a majority of the votes for Bolsonaro are actually votes against the PT.
The two men do share some similarities, including their disdain for political correctness and lack of a filter.
His unabashed nostalgia for the brutal military dictatorship that ruled Brazil between 1964 and 1985 has sent a chill through many voters.
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The center-left, in turn, collapsed with the candidacy of Lula, Brazil's most beloved and simultaneously most despised politician. An Ibope exit poll for the Rio de Janeiro governor race showed former judge Wilson Witzel, a Bolsonaro ally, scoring a shock victory over former Rio Mayor Eduardo Paes, suggesting earlier opinion surveys underestimated the electorate's deep-seated antipathy for the leftist Workers Party.
Haddad has also spent much time arguing that da Silva, his mentor, was unfairly jailed - a strategy aimed at attracting voters who still feel strong affection for da Silva, known in Brazil simply as Lula.
Bolsonaro is a 63-year-old congressman, retired captain in the Brazilian Army, and a self-described conservative Catholic who is married to an Evangelical Christian.
At a news conference afterward, Haddad cast the second round as pitting Bolsonaro's "neoliberalism" against the social programs that the PT has promoted.
He is riding a wave of anger at the establishment after the uncovering of one of the world's largest political graft schemes, opposition to a return to power by the leftist Workers Party (PT) blamed for much of that corruption, and fears about spiking crime in the country with more murders than any other.
Haddad called on Brazilians to unite behind him, warning that the 1988 Constitution that underpinned Brazil's young democracy was under threat.