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US stocks rose strongly after the Democratic Party won both houses of Congress in the midterm elections, while oil prices fell as geopolitical risks eased. The market also digested the changes in technology stocks and policy outlook.
The Democratic Party won control of both houses of Congress in the midterm elections on March 3, paving the way for divided government.US stocks It increased rapidly on the 4th.
Dow Jones The industrial index rose 1,569.40 points, or 3.03%, to close at 53,356.12, the largest single-day increase since President Trump suspended all tariff increases until April 2025; The S&P 500 index rose 119.70 points, or 1.58%, to close at 7688.62; The Nasdaq Composite Index rose 364.50 points, or 1.44%, to close at 25736.51 on post-election celebrations.
The market sharply appreciated the results of the Democratic sweep of both houses of Congress, which reflects both the referendum proposal and the possibility that newly elected officials could limit data center construction. Chip stocks like Nvidia and Micron fell; However, other groups in the technology sector offset some of the losses, with Apple and Microsoft both reaching record highs.
The midterm election results have also raised hopes that the war in the Middle East may end, resulting inoil price Brent crude futures fell sharply, falling 8% to around $95 a barrel.
Investors will continue to focus on post-election policy trends in housing and pharmaceuticals in the coming weeks. Yahoo Finance reporter Jared Blickre pointed out that historically, midterm elections often affect the short-term performance of the stock market, but have limited impact on the market in the long term.
In terms of economic data, data from the Institute for Supply Management (ISM) and S&P Global showed that the expansion of US service industry activity slowed in October as companies face rising cost pressures. On the other hand, the ADP report showed that employment growth in October was “quite solid” and private sector hiring efforts remained strong.
In terms of financial reports, Advanced Micro Devices (AMD)’s third-quarter financial results were better than expected; McDonald’s faces the dilemma of slowing same-store sales growth. Language learning platform Duolingo’s share price surged more than 30% on strong user growth.
Summary FAQ
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The Democratic Party gained control of the House and Senate and the markets interpreted this as the formation of a divided government and reduced policy uncertainty. This led to a surge in US stocks after the election, with the Dow Jones, S&P 500 and Nasdaq all closing significantly higher.
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The Dow Jones Industrial Average rose 1,569.40 points, or 3.03%; The S&P 500 rose 119.70 points, or 1.58%; The Nasdaq Composite Index rose 364.50 points, or 1.44%, recording a strong post-election performance.
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Oil prices fell 8% due to the possible end of the war in the Middle East, with Brent crude falling to around US$95 per barrel; Chip stocks like Nvidia and Micron fell, but Apple and Microsoft hit new highs, and Duolingo surged more than 30% on user growth.
