Dow Jumps 1,569 Points as Democrats Win Congress
The Dow Jones Industrial Average rose 1,569 points, or 3%, as investors bought after Democrats won both chambers of Congress, oil fell more than 8% and Treasury yields dropped.
The New York Stock Exchange's Broad Street facade, October 2023.Illustration by The Good Times, based on a photo by Jakub Hałun / Wikimedia Commons (CC BY 4.0)
The Dow Jones Industrial Average jumped 1,569.40 points, or 3.03%, to close at 53,356.12, its best day since President Trump paused his reciprocal tariffs last year. The S&P 500 gained 1.58% to 7,688.62, and the Nasdaq Composite rose 1.44% to 25,736.51. The rally followed Democrats' wins in both chambers of Congress and Trump's statement that he would accept the results, which CNBC said removed political uncertainty hanging over markets. Falling oil prices added to the gains. Retailers and banks led, with Walmart up about 3% and Bank of America about 4%. Apple rose 5.31% and passed Nvidia as the most valuable company. Chipmakers fell on fears of tighter rules for data centers, and the Philadelphia semiconductor index lost 3.13%. Nvidia fell 3.17%, Micron 7% and Tesla 3.34%. The yield on the 10-year Treasury note fell to 4.886%. The Dow closed above 53,000 for the first time since September 8.
The Dow's 3.03% gain was its largest since April 9, 2025, and took it back above 53,000 for the first time since September 8. The S&P 500 rose 119.70 points, and the Nasdaq Composite gained 364.50 points.
CNBC said the decisive Democratic win and Trump's acceptance of the result "removed political uncertainty risk hanging over Wall Street." Democrats will be a check on Trump's policies, which have included business-friendly tax cuts as well as tariffs and a war with Iran that has pushed up inflation.
The yield on the 10-year Treasury note fell 0.064 percentage point to 4.886%.
Companies tied to the broader economy led. Walmart rose 3.45%, JPMorgan 4.18% and Bank of America about 4%. Among the largest companies, Apple rose 5.31% and overtook Nvidia as the most valuable listed company, Microsoft rose 6.68%, Amazon 6.12% and Alphabet 3.18%.
Shares tied to the build-out of AI data centers fell. Investors worried that Democratic majorities, and Democrat Gina Hinojosa's win in the Texas governor's race on a promise to pause data center approvals, could slow construction. Nvidia fell 3.17%, TSMC 2.24%, Broadcom 2%, Micron 7% and Intel 3.77%, and the Philadelphia semiconductor index dropped 3.13%. SpaceX fell 3.81% and Tesla 3.34%.
The S&P 500 has risen in the year after each of the last 11 midterm elections from 1982 to 2022, by 13.7% on average, according to a CNBC analysis.