U.S. stocks surged Wednesday following midterm elections, with the S&P 500 up 1.6% and the Dow up 1,569 points as Brent crude dropped to $94.62.
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U.S. stocks rallied broadly on Wednesday after the midterm elections left President Donald Trump’s party without sole control of Washington.
The S&P 500 rose 119.70 points to 7,688.62 for its best day in three months, while the Dow Jones Industrial Average gained 1,569.40 points to 53,356.12 and the Nasdaq composite climbed 364.50 points to 25,736.51.
Among the biggest drags, Trump Media & Technology Group fell 24.5%, after briefly touching a peak of $175 five years ago and dropping to $4.49, with Truth Social identified as its main business. Tesla fell 3.3% and SpaceX declined 3.8%.
Investors also focused on the outlook for artificial intelligence. Nvidia dropped 3.2% and was described as the heaviest weight on the S&P 500, while CoreWeave, which rents access to AI chips over the cloud, fell 9.9%. Alphabet rose 3.2%.
Concerns around potential policy shifts were tied to the possibility of pressure to pull back on the war with Iran, which was linked to oil price declines. Brent crude fell 8.7% to $94.62, after dropping below $95 and touching its lowest level in two months.
Stocks for some military suppliers were reported to be under pressure, including Lockheed Martin down 6.9%, Northrop Grumman down 4.5% and General Dynamics down 2.6%.
ExxonMobil fell 4.6% and ConocoPhillips dropped 5.2% as oil weakened. Meanwhile, first solar and Enphase Energy rose 4.6% and 3.7%, respectively.
Healthcare and low-income-focused retailers also gained, including a 10.3% increase for HCA Healthcare. Dollar Tree rose 9.6%.
In the bond market, Treasury yields fell as oil prices dropped and inflation concerns eased. The 10-year Treasury yield declined to 4.88% from 4.95% late Tuesday.
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