US Stocks Rally Following Midterm Elections
US stocks closed sharply higher on Wednesday, with the S&P 500 rising 1.6%, the Dow gaining 1,569 points to a two-month high and the Nasdaq advancing 0.9%. Democratic gains in Congress, alongside opposition to the war in Iran, extended this week’s oil price slump, helping drive post-election gains in stocks and bonds. Expectations that political gridlock could limit further fiscal expansion and ease pressure on bond markets also supported equities. Credit-sensitive stocks led the rally. Financials advanced, with JPMorgan up 4.2% and Berkshire Hathaway gaining 3.9%. Major technology companies also climbed, despite growing borrowing needs tied to AI investment. Microsoft jumped 6.7%, Alphabet rose 3.2% and Meta added 1.4%. Microsoft also benefited from strong quarterly results released last week. In contrast, chipmakers fell as the Democratic victory raised expectations of tighter regulatory scrutiny of the AI sector.
US stocks closed sharply higher on Wednesday, with the S&P 500 rising 1.6%, the Dow gaining 1,569 points to a two-month high and the Nasdaq advancing 0.9%. Democratic gains in Congress, alongside opposition to the war in Iran, extended this week’s oil price slump, helping drive post-election gains in stocks and bonds. Expectations that political gridlock could limit further fiscal expansion and ease pressure on bond markets also supported equities. Credit-sensitive stocks led the rally.
Financials advanced, with JPMorgan up 4.2% and Berkshire Hathaway gaining 3.9%. Major technology companies also climbed, despite growing borrowing needs tied to AI investment. Microsoft jumped 6.7%, Alphabet rose 3.2% and Meta added 1.4%. Microsoft also benefited from strong quarterly results released last week.
In contrast, chipmakers fell as the Democratic victory raised expectations of tighter regulatory scrutiny of the AI sector.