Dow Gains 3% as Stocks Rally After Democrats Sweep Congress

The Dow Jones Industrial Average rose 1,569.40 points, or 3%, to 53,356.12 on Wednesday after Democrats won control of both chambers of Congress, according to Commonwealth Bank citing AAP and to CNA.

The S&P 500 gained 119.70 points, or 1.6%, to 7,688.62, its best day in three months, and the Nasdaq Composite advanced 364.50 points, or 1.4%, to 25,736.51, Commonwealth Bank reported. CNA said all three major indexes finished solidly higher, with the Dow up more than 1,500 points.

Oil slide and sector moves

Brent crude fell 8.7% to $94.62 a barrel, Commonwealth Bank said, after Vice President JD Vance attributed Republican midterm losses in part to the unpopularity of the Iran war and the fuel-price spike that followed. CNA reported both major crude contracts finished under $100 a barrel, down more than 8%.

Hospital operator HCA Healthcare rose 10.3% and Dollar Tree gained 9.6%, Commonwealth Bank said, as investors weighed the chance a Democratic Congress would push back on recent federal health and food-assistance cuts. Lockheed Martin fell 6.9%, Northrop Grumman 4.5% and General Dynamics 2.6%. Tesla dropped 3.3% and SpaceX 3.8%. First Solar climbed 4.6%. Trump Media & Technology Group sank 24.5%.

Nvidia fell 3.2% and was the heaviest drag on the S&P 500, Commonwealth Bank said. Business Recorder, citing Reuters, said the Dow was up about 2.4% near midday Wednesday before the close, with Amazon, Alphabet and Meta among the stronger large technology names while some data-center operators traded lower.

Bond yields ease

The 10-year Treasury yield slipped to 4.88% from 4.95% late Tuesday as oil prices eased inflation pressure, Commonwealth Bank reported. Strategists quoted by the bank said markets often prefer divided government because it reduces the odds of sweeping fiscal changes, while President Donald Trump keeps executive authority over defense, foreign policy and some trade tools.

Sources: CNA, Commonwealth Bank / AAP, Business Recorder / Reuters.