Wall Street jumps as Democrats win Congress, oil falls
The Dow closed up 3.03 percent at 53,356.12, its biggest one-day gain since April 2025, after the midterm results and a sharp drop in oil prices.
US stocks rallied on Wednesday after Democrats won control of Congress and oil prices fell sharply, Turkey's state-run news agency Anadolu Agency reported.
The Dow Jones Industrial Average rose 1,569.40 points, or 3.03 percent, to close at 53,356.12, its strongest daily gain since April 2025 and its first close above 53,000 since Sept. 8.
The S&P 500 gained 119.70 points, or 1.58 percent, to 7,688.62, while the Nasdaq Composite added 364.50 points, or 1.44 percent, to 25,736.51.
The rally came a day after Tuesday's midterm elections, in which Democrats took majorities in both the Senate and the House, ending Republican control of Congress and leaving a divided government for the rest of President Donald Trump's second term.
Democrats also won several governor races, including in Texas, where Gina Hinojosa defeated Republican Gov. Greg Abbott, ending more than three decades of Republican control of the state's governor's office.
Trump said he would accept the election results and was ready to work with Democrats, which eased concerns about a long period of political uncertainty.
Investors read the outcome as a possible check on Trump's trade, fiscal and foreign policies, particularly as the US-Israeli war with Iran adds strain to the economy.
Energy prices fell as traders expected the results to increase pressure on Washington to pursue a diplomatic settlement of the conflict.
Brent crude, the international benchmark, dropped more than 8 percent to about $94.60 a barrel, while US benchmark West Texas Intermediate fell to roughly $88.60.
Vice President JD Vance linked Republican losses partly to the Iran war, a remark that suggested the administration could face growing pressure to end it.
Lower energy costs also raised hopes that inflationary pressures could ease.
Walmart rose about 4 percent and Bank of America gained roughly 3 percent, while some artificial intelligence infrastructure companies fell on concerns that Democratic control of Congress could bring tighter oversight of data centers and their environmental impact.
The Cboe Volatility Index, commonly known as Wall Street's fear gauge, fell 20.26 percent to 16.61.
European markets also closed much higher on Wednesday, as the midterm results, cheaper energy and stronger corporate earnings boosted investor confidence.
The Stoxx Europe 600 climbed 1.82 percent to 657.40 points, Spain's IBEX 35 jumped 3 percent to 19,370.90 and Germany's DAX rose 2.22 percent to 26,437.67.
Italy's FTSE MIB gained 2.18 percent to 51,031.02, France's CAC 40 rose 1.96 percent to 8,177.89 and Britain's FTSE 100 increased 1.79 percent to 10,829.21.
The euro strengthened 0.32 percent against the US dollar to $1.123 at the European market close.
