REFILE-US STOCKS-Wall St rallies on U.S. elections led by tech, health stocks

(Corrects typo in headline to “led” instead of “lead”)

* Democrats win control of House, Republicans keep Senate

* Tech, health stocks gain as regulation fears ebb

* Bank stocks flat as Treasury yields slip

* Indexes up: Dow 1.74 pct, S&P 1.74 pct, Nasdaq 2.2 pct

By Sinéad Carew

NEW YORK Nov 7 (Reuters) – U.S. stocks surged on Wednesday with broad gains led by the technology and healthcare sectors as investors, relieved to put midterm elections behind them, made bets that a divided Congress would be good for equities.

Democrats won control of the House of Representatives on Tuesday, while President Donald Trump’s Republican party expanded its Senate majority, pointing to a political gridlock in Washington.

The S&P’s biggest boosts came from the S&P technology sector , which rose 2.4 percent, and the healthcare index , which gained 2.8 percent as investors were more comfortable taking on risky bets. The consumer discretionary sector was also a strong gainer as soared.

“I don’t think any of Trump’s agenda that he’s already accomplished gets unwound. That was the main point of concern for investors,” said Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas. “We’ve got a relief rally because the market got exactly what it expected.”

At 2:53PM ET, the Dow Jones Industrial Average rose 444.78 points, or 1.74 percent, to 26,079.79, the S&P 500 gained 47.9 points, or 1.74 percent, to 2,803.35 and the Nasdaq Composite added 162.37 points, or 2.2 percent, to 7,538.34.

While a divided Congress will make it harder for Trump’s administration to push through new legislation such as additional tax cuts, investors were not expecting a reversal of tax cuts and deregulation measures that have already been enacted.

Some strategists said Democratic control of the House means President Donald Trump

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