Dow Jumps 1,569 Points in Best Post-Midterm Rally Since 1982 as Oil Prices Slide
The Dow Jones Industrial Average rose 3% to 53,356.12 on Wednesday as investors welcomed Democratic control of Congress and a sharp drop in oil prices, while shares of AI and data center companies fell.
US stocks surged on Wednesday as Wall Street welcomed the outcome of the midterm elections, with the Dow Jones Industrial Average posting its biggest single-day gain after a midterm vote since 1982. The Dow climbed 1,569 points, or 3%, to close at 53,356.12, its best day since April 2025, according to data from CFRA Research cited by CNN.
The S&P 500 rose 1.58% to 7,688.62, its second-biggest single-day gain after a midterm election since 1982. The Nasdaq Composite gained 1.44% to 25,736.51, its biggest one-day post-midterm rise since 2018. Stock futures had fallen on Tuesday night before turning higher overnight as investors took comfort in the decisive results and in Trump’s statement that he would accept them.
Bond yields fell and the dollar weakened against a basket of major currencies. The VIX, which measures expectations for market volatility, sank almost 20%.
Oil drops as traders bet on a shorter war
Oil prices fell sharply as traders bet that a Democratic Congress makes a settlement of the Iran war more likely. Brent crude, the international benchmark, fell almost 8.7% and settled at $94.62 a barrel, its lowest settlement since August 31. Oil prices dropped further after Vice President JD Vance blamed the war for the Republican losses.
Not every analyst shared the market’s view. “Traders are betting that the administration is going to quit this war because the [midterms] shellacking was bigger than anyone expected,” Bob McNally, president and founder of Rapidan Energy Group, told CNN. “We’re not buying it. We think escalation is more likely.”
Investors also welcomed the prospect of divided government, which can curb excess spending and make the policy outlook more predictable. “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,” George Saravelos, global head of FX research at Deutsche Bank, said in a note.
AI stocks fall while the broader market rises
While most stocks rose, shares tied to the AI data center buildout fell. Nvidia dropped 3%, an exchange-traded fund tracking AI infrastructure stocks fell 9%, and shares of CoreWeave and Nebius sank roughly 10% and 6.7%. The midterm results raised questions about whether more states will slow the data center buildout after the issue became a central one in many campaigns.
Shares of CVS Health fell 12.5% after the company announced it would split into two companies.
“A Democratic-controlled Congress would significantly constrain Trump’s legislative agenda, particularly on taxes, fiscal stimulus and spending,” Charu Chanana, chief investment strategist at Saxo, said in a note on Wednesday. “But Democrats would not have a free hand to rewrite policy either, because Trump retains veto power.”
Reporting based on coverage by CNN.
