US stocks jump after midterms; Dow rises more than 1,500 points as oil falls

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U.S. stocks rose sharply on Wednesday after midterm election results left President Donald Trump’s party without sole control of Washington.

In broad market moves reported for Wednesday trading, the S&P 500 was up 1.6% and the Nasdaq composite rose 1.4%, while the Dow Jones Industrial Average surged more than 1,500 points, with one hour remaining in trading at the time of the report.

The rally was led by stocks of hospital owners and retailers focused on lower-income Americans, following nationwide losses for Republicans in the midterms.

Oil prices fell alongside equities gains, with Brent crude dropping 8.7% to $94.62 and touching a level described as the lowest in two months, as Treasury yields eased in the bond market.

The report also cited concerns and outlooks tied to political and economic change, including investors’ focus on risks ahead for Trump’s social-media company, the AI industry and businesses owned by Elon Musk.

It further noted that Vice President JD Vance blamed the war with Iran, which caused a spike in oil prices, for Republicans’ midterm losses, while strategist commentary on Wall Street emphasized that election outcomes may matter less than company earnings and interest-rate trends for the broader market.

Among the specific market movers discussed, Trump Media & Technology Group fell 23.5%, Tesla dropped 2.6%, and SpaceX fell 5.3%.

AI-related stocks were mixed to lower in the report, including Nvidia down 2% and CoreWeave down 9.6%, while Alphabet rose 4.1%.

Defense stocks also declined in the coverage, with drops including 6.7% for Lockheed Martin, 4% for Northrop Grumman and 2.5% for General Dynamics.

Treasury market figures in the report showed the 10-year Treasury yield at 4.88%, down from 4.95% late Tuesday.

Indexes also climbed in other markets, including gains of 2% in Paris, 2.2% in Shanghai and 1.8% in London, while Japan’s Nikkei 225 fell 1.4%.