U.S. stocks rose sharply on Wednesday, Nov. 4, after Democrats won control of both chambers of Congress, while the Dow gained 3% as oil prices fell.
The Dow Jones Industrial Average rose 1,569 points, or 3.03%, to close at 53,356.12, its strongest session since April 2025. The S&P 500 rose 1.58%, while the Nasdaq Composite gained 1.44%. Investors appeared to welcome a clearer political outlook and the possibility that a government with power split among parties could limit major policy changes.
Oil prices fell more than 8% as investors considered whether the election result might increase pressure to end the war with Iran. The drop in oil prices helped improve sentiment across the wider market. But gains varied across the market.
Large technology companies rose, while some data-center companies and chip stocks fell amid concerns about tighter rules for AI infrastructure. The election results brought renewed attention to inflation and gasoline costs, issues that had featured in the campaign. Analysts cautioned against treating the one-day rally as a lasting trend.
They noted that company earnings and interest rates can matter more to stocks over time than election results.