Business · Markets · 28 mins ago
US stocks rise as Democrats take control of Congress
Democrats won control of both houses of the US Congress in the midterm elections, while President Donald Trump remains in office.
Major US stock indexes rose on Wednesday morning as investors reacted to the results.
The Dow gained about 1,000 points shortly after trading began, while the S&P 500 and Nasdaq also moved higher.
Investors saw the outcome as clearer than expected and thought a divided government could limit sweeping policy changes.
That could reduce concerns about government spending and make the outlook more predictable, though Trump can still veto legislation.
The results also raise questions about AI data centers, as some investors worry new restrictions could slow their expansion.
Markets will continue to weigh how the new Congress could affect policies and industries, including technology, energy and defence.
U.S. stock markets rose after Democrats won majorities in both houses of Congress in the midterm elections.
The Dow rose 1,045 points, or 2%, shortly after Wednesday’s opening bell.
Investors saw the results as reducing uncertainty and the likelihood of sweeping fiscal changes.
Markets also weighed whether Democratic control could slow the expansion of AI data centres.
European shares rose, while the U.S. dollar weakened and bond yields eased.
- Who
- Democrats won majorities in both houses of Congress; investors and financial markets reacted to the results.
- What
- U.S. stocks and futures rose after the midterm results, as investors assessed their policy implications.
- When
- Wednesday, November 4, 2026.
- Where
- The United States, with market moves also reported in Canada, Europe and Asia.
- Why
- Investors welcomed greater certainty and the prospect of limits on major policy changes and fiscal spending, while considering possible effects on AI infrastructure and other sectors.
Investors welcoming policy restraint
Investors concerned about potential disruption
Fiscal policy
Investors welcoming policy restraint
They saw divided government as likely to curb excessive spending and make the outlook more predictable.
Investors concerned about potential disruption
They remained concerned about the effect of the election on fiscal policy and the dollar.
AI data centres
Investors welcoming policy restraint
They expected markets to rise as election uncertainty eased.
Investors concerned about potential disruption
They worried that Democratic victories could bring more restrictions or moratoriums on data-centre construction.
Trump’s agenda
Investors welcoming policy restraint
They viewed congressional resistance as a check on sweeping policy changes.
Investors concerned about potential disruption
They noted that Trump retains executive authority in key areas and veto power over legislation.
U.S. stock futures reversed earlier losses and turned higher.
Election projections showed Democrats winning majorities in both houses of Congress.
The Dow rose 1,045 points, or 2%, while the S&P 500 and Nasdaq also gained.
European shares rose, while the dollar weakened and bond yields eased.
- Dow
- Up 1,045 points, or 2%, shortly after the opening bell
- S&P 500
- Up 1.25%
- Nasdaq Composite
- Up 1.3%
- Democratic result
- Majorities in both houses of Congress
- European shares
- CAC 40 rose 1.6% in early trading
- Dollar
- Weakened against a basket of major currencies
7 sources
U.S. stocks rally, and the Dow soars more than 1,000 points
Stocks Rally Higher After Democrats Flip Congress
Dow jumps by 1,000 points as Democrats take control of Congress
U.S. futures sharply higher after Democratic route in midterm elections
Stock markets poised for a rally after U.S. midterm election
Borse Ue in rialzo dopo l’esito delle Midterm, a Milano toniche le banche
What people are saying
The combination of a large Democratic majority in Congress and President Trump’s statement that he is willing to work with the opposition should act as a break on extreme policy outcomes and bring down risk premia
The magnitude of the gains for the Democrats in the midterms does not change too much for the near-term policy outlook, given the party still lacks a filibuster-proof majority in the Senate and President Trump has veto power to block legislation
Trump is not now a lame duck, but an angry duck
collaboreremo con i Democratici e, insomma, non vediamo l’ora di lavorare con loro. Probabilmente troveremo un accordo.