U.S. stocks rose Wednesday, following closely watched midterm elections that saw Democrats take control of the House, as expected, delivering a divided Congress.
How are the benchmarks performing?
The Dow Jones Industrial Average gained 260 points, or 1%, to 25,790, while the S&P 500 index ESZ8, +1.40% climbed nearly 35 points, or 1.3%, to 2,779. The Nasdaq Composite Index NQZ8, +2.20% jumped 127 points, or 1.7%, to 7,503. DJIA, +1.46%
On Tuesday, the Dow Jones Industrial Average DJIA, +1.46% rose 173.31 points, or 0.68%, to 25,635.01, the S&P 500 index SPX, +1.63% rose 0.63%, and the Nasdaq Composite Index COMP, +2.19% climbed 0.64%, or 47.11 points, at 7,375.96.
The Dow closed at a session high, while the S&P 500 and Nasdaq ended the day just shy of Tuesday’s best levels.
What’s driving the market?
U.S. midterm election results largely fell in line with predictions, with Democrats set to take control of the House and Republicans on track to strengthen their grip on the Senate.
It remains to be seen how President Donald Trump will approach governing in a divided Washington. In the past he has indicated a willingness to champion typically Democratic policies like price controls on pharmaceuticals, or increased spending on infrastructure. However, the president struck a defiant tone on Wednesday in a series of tweets, threatening to respond to Democratic investigations of his administration with Senate-sponsored investigations of a Democratic House.
The result undercuts hopes for further business-friendly tax cuts or an acceleration of the president’s deregulatory agenda, but for now, markets look upbeat as any immediate uncertainty fades. Also, a potential roadblock to further fiscal stimulus was cited as a positive by market analysts.