Dow Soars 1,569 Points as Democrats Win Congress, Oil Drops
News originally published by
MENAFNThe Dow jumped 1,569.40 points, or 3.03%, to close at 53,356.12, its first finish above 53,000 since Sept. 8. The S&P 500 added 119.70 points, or 1.58%, to reach 7,688.62, and the Nasdaq Composite climbed 364.50 points, or 1.44%, to 25,736.51.
The rally came a day after Tuesday’s midterms, in which Democrats took control of both the Senate and the House of Representatives. The result ends Republican control of Congress and sets up a divided government for the rest of President Donald Trump’s second term.
Democrats also claimed several governorships. In Texas, Gina Hinojosa unseated Republican Gov. Greg Abbott, ending more than three decades of Republican hold on the state’s top office.
Trump said he was prepared to accept the results and work with Democrats, easing fears of a drawn-out period of political uncertainty.
Investors read the outcome as a possible check on Trump’s trade, fiscal and foreign policies, especially as the US-Israeli war with Iran adds to economic strain. Energy prices collapsed on expectations that the results will push Washington toward a diplomatic settlement of the conflict. Brent crude, the international benchmark, dropped more than 8% to about $94.60 a barrel, while West Texas Intermediate, the US benchmark, slid to roughly $88.60.
Vice President JD Vance blamed the Republican losses in part on the Iran war, reinforcing expectations that the administration will face growing pressure to bring the fighting to an end. The prospect of cheaper energy also fueled hopes that inflationary pressures could cool.
Financial and consumer stocks led the advance, with Walmart up about 4% and Bank of America up roughly 3%. Some artificial intelligence infrastructure companies, however, lost ground amid concern that a Democratic Congress could bring tougher oversight of data centers and their environmental footprint.
The Cboe Volatility Index, widely known as Wall Street’s fear gauge, collapsed 20.26% to 16.61.
European Markets Join the Surge
European equities also finished sharply higher Wednesday, lifted by the US election outcome, lower energy prices and stronger corporate earnings.
The Stoxx Europe 600 rose 1.82% to 657.40 points. Spain’s IBEX 35 led the major indexes, leaping 3% to 19,370.90 points. Germany’s DAX gained 2.22% to 26,437.67, Italy’s FTSE MIB rose 2.18% to 51,031.02 points, France’s CAC 40 climbed 1.96% to 8,177.89 and Britain’s FTSE 100 advanced 1.79% to 10,829.21.
The euro firmed 0.32% against the US dollar to $1.123 by the close of European trading.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
