U.S. stocks staged a broad rally Wednesday, a day after Democrats took control of both chambers of Congress. Traders said the result removed a layer of uncertainty, and President Donald Trump’s acceptance of the election results helped Wall Street move on to what divided government might mean for taxes, spending and regulation.
The Dow Jones Industrial Average climbed 1,569.40 points, or 3.03%, to close at 53,356.12. The S&P 500 gained 1.58% to 7,688.62, and the Nasdaq Composite added 1.44% to 25,736.51.
The Dow had not closed above 53,000 since Sept. 8 — nearly two months ago. Wednesday’s gain was its best session since April 9, 2025, when Trump paused his so-called reciprocal tariffs.
Democrats’ victories in Tuesday’s midterm elections set up divided government, putting Congress in a position to challenge Trump’s agenda. Democrats also won governor’s races in Virginia and New Jersey, adding to the party’s gains.
“A clear result is good news for markets, even if it means gridlock,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “Investors can now focus on earnings and interest rates rather than the ballot count.”
Trump said he would recognize the results and work with Democrats, Charles Schwab reported in its Wednesday market commentary.
Stocks built on their gains as oil prices fell sharply. U.S. crude dropped more than 8% to $57.30 a barrel, while Brent crude fell 7.6% to $61.20.
JD Vance said the Iran war had hurt Republicans, a comment that traders read as a signal the administration could seek a de-escalation.
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