By Sinéad Carew
NEW YORK Nov 7 (Reuters) – Wall Street rose 2 percent on Wednesday, led by the technology and healthcare sectors as investors breathed a sigh of relief following the U.S. midterm elections and made bets that a divided Congress would be good news 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 the likelihood of political gridlock in Washington.
The S&P’s biggest boosts came from the S&P technology sector and the healthcare stocks, with both indexes gaining 2.9 percent. The consumer discretionary sector climbed 3.1 percent, spurred by a 6.9 percent rise in Amazon.com shares. Amazon provided the single biggest boost to the S&P 500.
“Now we’re in an environment that people can understand again so they’ll be willing to put some money back on the table. There was a little fear out there,” said Peter Tuz, president at Chase Investment Counsel Corp in Charlottesville, Virginia.
The Dow Jones Industrial Average rose 545.29 points, or 2.13 percent, to 26,180.3, the S&P 500 gained 58.44 points, or 2.12 percent, to 2,813.89, and the Nasdaq Composite added 194.79 points, or 2.64 percent, to 7,570.75.
The CBOE Volatility Index, the most widely followed gauge of expected near-term gyrations for the S&P 500, finished down 3.55 points at 16.36, its lowest close in about a month.
While a divided Congress will make it harder for President Donald Trump to push through new legislation such as additional tax cuts, investors were not expecting a reversal of tax cuts and deregulation already enacted under Trump.
“This outcome probably provides the most paralysis