Dow gains 1,501 points as Brent crude falls below $95
U.S. equities surged Wednesday after Democrats captured both chambers of Congress, while oil prices dropped 8.8% to their lowest level in nearly a month.
By Chioma Kuznetsov ·
The Dow Jones Industrial Average climbed 1,501 points, a 2.9% jump, as of 1:11 p.m. Eastern time Wednesday. The rally followed the midterm elections, in which President Donald Trump’s party lost its sole control of Washington. The S&P 500 rose 1.8%, and the Nasdaq composite gained 2.1%.
Republican losses marked a sharp shift from the summer, when the party held full control of the government. Investors had watched the market through a period of high volatility driven by the war with Iran, which sent oil prices spiking. Vice President JD Vance attributed the party’s defeat to that conflict. Now, with Democrats set to take control of both the Senate and the House, Wall Street appears to favor the new balance of power, which reduces the risk of sweeping economic changes.
Oil markets reacted immediately to the political shift. The price for a barrel of Brent crude, the international standard, plunged 8.8% to $94.51. This marked the first time the price fell below $100 in nearly a month. The contract had fluctuated between $70 and $120 per barrel since the war with Iran began. The drop pressured major oil firms, with ExxonMobil falling 5.3% and ConocoPhillips dropping 5.9%.
Sector winners included solar power and healthcare, sectors that often benefit from Democratic legislative agendas. First Solar jumped 6.4%, and Enphase Energy climbed 6.2%. HCA Healthcare, which operates hospitals, rose 10.6% on hopes that Democrats may reverse federal cuts passed in the “One Big Beautiful Bill Act.” Dollar Tree, a retailer focused on lower-income consumers, surged 8.9% as investors bet on policies to assist households facing high living costs.
Losers included companies tied to the Trump administration and the defense sector. Trump Media & Technology Group fell 15.9%, continuing a slide from a peak of $175 five years ago. Elon Musk’s Tesla dropped 2%, and SpaceX fell 3.4%, as investors weighed the risk of investigations by a Democratic Congress. Defense stocks declined on the prospect of reduced military activity in the Middle East. Lockheed Martin fell 6.9%, Northrop Grumman dropped 4.4%, and General Dynamics lost 2.3%.
AI stocks faced mixed results. Nvidia, the leading chip maker, sank 1.4% and weighed on the S&P 500. CoreWeave dropped 9.1%. However, Alphabet rose 4.4% after a recent 12% drop, and Advanced Micro Devices gained 0.5% following strong quarterly profits. Investors remain divided on the long-term impact of the election, with some noting that corporate earnings matter more than political control. Brian Jacobsen, chief economic strategist at Annex Wealth Management, stated, “Earnings trump elections.”
Global markets mirrored the U.S. rally. The Paris index climbed 2%, Shanghai rose 2.2%, and London gained 1.8%. Japan’s Nikkei 225 was the exception, falling 1.4%. In the bond market, the yield on the 10-year Treasury eased to 4.91% from 4.95% late Tuesday, signaling reduced concerns about further deficit expansion.
More Business · Consumer Watch · Report a business · Got a Story?
