The Dow Jones Industrial Average surged 1,569 points on Wednesday, its best day since April 2025, as Wall Street cheered the Democrats’ sweeping victories in the midterm elections and a steep fall in oil prices. The blue-chip index closed 3 per cent higher at 53,356.12 — its biggest single-day gain after a midterm election since 1982, according to data from CFRA Research, and the fifth-largest one-day points gain in its history.
The S&P 500 rose 1.58 per cent to 7,688.62, its second-biggest post-midterm gain since 1982, while the Nasdaq Composite climbed 1.44 per cent to 25,736.51, its largest one-day post-midterm rise since 2018. Stocks had fallen on Tuesday night before recovering overnight as the scale of the Democratic wins became clear and President Donald Trump said he would accept the results and work with the opposition.
Investors welcomed the prospect of divided government. With Democrats in control of both chambers of Congress and Mr Trump retaining his veto, traders bet that sweeping new spending and tax changes would be harder to pass — a combination that tends to reassure bond markets. The VIX, Wall Street’s gauge of expected volatility, sank almost 20 per cent, while Treasury yields fell and the dollar weakened.
Oil provided the other big lift. Brent crude fell 8.7 per cent to $94.62 a barrel, its lowest settlement since 31 August, while US crude dropped 8.3 per cent to $88.12, as traders bet that a Democratic Congress could push for an end to the war with Iran. Vice President JD Vance said the war had cost Republicans the election. “The reason we lost is the war,” he wrote. “The president himself said so last night.” Not everyone was convinced: Bob McNally of Rapidan Energy Group said traders were betting the administration would quit the war, adding: “We’re not buying it. We think escalation is more likely.”
The rally was not universal. Big technology stocks led the Dow higher, with Amazon, Microsoft and Apple each rising more than 6 per cent, according to TheStreet’s closing report. But the artificial intelligence trade split sharply: Nvidia fell 3 per cent, an exchange-traded fund tracking AI infrastructure dropped 9 per cent, and data-centre names such as CoreWeave and Nebius sank about 10 per cent and 6.7 per cent. Democratic wins in states including Texas, where data centres have become a flashpoint in local campaigns, raised questions about whether new restrictions could slow the buildout. Tesla fell 3.3 per cent.
The contrast with Asia was stark: South Korea’s Kospi slid 4 per cent on Thursday as chip and data-centre shares fell, a reminder that the post-election rotation is far from settled. Whether Wall Street’s rally holds will depend on whether the oil slide lasts — and on whether a divided Washington can turn an election result into a governing arrangement.
Sources: CNN, “Dow posts best post-midterm elections day in 44 years as Democrats take control of Congress” (https://www.cnn.com/2026/11/04/investing/us-markets-midterm-elections); Investopedia, “Markets News, Nov. 4, 2026: Dow Jumps Nearly 1,600 Points as Stocks Soar After Democrats’ Decisive Win in Midterms; WTI Oil Slides 8%” (https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-nasdaq-11042026-12234321).
