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US Stocks Surge, and the Dow Soars 1,500 Points as Oil Prices Tumble Following the Midterm Elections
Investors bet gridlock will curb big spending and tax changes, while oil prices and Treasury yields fell and healthcare and dollar-store stocks led gains.
- On Wednesday, U.S. stocks soared after the Republican Party lost sole control of Washington in midterm elections, ending President Donald Trump's unified power and handing Democrats control of both chambers of Congress.
- Wall Street investors generally prefer split control of Washington because it lessens the risk of transformative economic changes. This shift signals reduced concern about mounting government debt under the coming end to one-party control.
- Healthcare stocks climbed 9.6% and Retailers rose 8.9% on hopes Democrats may reverse cuts to assistance programs, while Oil prices plunged 8.6% to $94.70, hurting ExxonMobil and ConocoPhillips. Conversely, Elon Musk's Tesla fell 2.6% and SpaceX sank 5.3% amid potential investigations by a Democratic-controlled Congress.
- In the Bond market, Treasury yields eased to 4.89% from 4.95% late Tuesday as falling Oil prices reduced inflation pressure. Investors are reacting to decreased likelihood of major new spending initiatives under split control.
- Strategist Carsten Brzeski of ING Bank warned Trump could become an "angry duck" who restarts tensions over tariffs and NATO spending, though he may instead pursue diplomatic efforts. Trump retains executive authority over Defense and foreign policy regardless.
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24 Articles
24 Articles
New York stock exchanges rose sharply on Wednesday as the Democrats' landslide victory in the US midterm elections fuels hopes among investors that the war with Iran can end soon. As a result, oil prices also fell sharply.
·Apeldoorn, Netherlands (Kingdom of the)
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Dow Surges To Two-Month Closing High As Democrats Win Control Of Congress
Following the mixed performances seen in the two previous sessions, the major U.S. stock indexes all showed significant moves to the upside. The Dow showed a particularly strong upward move, reaching a two-month closing high. The major averages gave back some ground going into the end of the day but remained sharply higher.
Coverage Details
Total News Sources24
Leaning Left2Leaning Right5Center8Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
13%
C 54%
R 33%
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