Wall Street roars: Dow rockets 1,500 points as Democrats sweep Congress

US stocks surged Wednesday as markets greeted the resolution of US midterm elections, while oil prices tumbled on expectations the Democratic sweep could hasten a resolution to the US-Iran war.

All three major US indices finished higher, led by the Dow Jones Industrial Average, which jumped three percent. Oil prices dropped more than eight percent.

US stocks surged Wednesday as investors bet that a divided government would curb Trump’s agenda and pressure him to wind down the Iran war.

The Dow led the rally with a 3% jump.

The numbers

The Dow Jones Industrial Average rallied 1,569.40 points to 53,356.12, and the Nasdaq composite climbed 364.50 to 25,736.51. The S&P 500 rose 119.70 points, or 1.6%, to 7,688.62, its best day in three months.

The Dow had its best day since April 2025 and its biggest post-midterm gain since 1982, according to CFRA Research.

The S&P’s gain was its second-biggest post-midterm one-day gain since 1982, behind 2018.

Winners and losers

Hospital owners and dollar stores serving low-income Americans helped lead the rally. Consumer discretionary led the sectors, with Amazon up 7% and Alphabet up more than 4%. Solar-power companies were early winners.

The losers were tied to AI and to Trump. Nvidia fell 3.1% and was the heaviest weight on the S&P 500, while Trump Media sank 24.5%. CoreWeave dropped 9.6% earlier in the day.

Oil and bonds

The prospect of pressure to pull back on the war sent Brent crude plunging 8.7% to $94.62. Bond yields also fell as traders weighed the war’s future.

Why markets cheered

Analysts said political gridlock would limit Congress’s ability to pass major tax and spending packages. Strategists also noted that earnings, not elections, drive stocks.

The S&P 500 rose an average of 15.5% in the six months after the last 14 midterm elections dating back to 1970, according to Edward Jones.

What to watch

Whether Trump chooses strikes or a deal on Iran, how oil holds near $94, and whether the AI selloff deepens.

Sources: AP, CNN, CBS News, Yahoo Finance. Index levels are from AP closing data.