Markets
Wall Street rallies as Democrats win Congress, with Big Tech leading and the Dow up 1,100 points
US stocks jumped in early trading on Wednesday as investors priced a divided Washington, while Treasury yields eased from a high base.
HedgeWeekly News Desk ·
US stocks rose sharply in early trading on Wednesday after Democrats were projected to win both the House and the Senate in the midterm elections. At 9:58 a.m. ET the Dow Jones Industrial Average was up 1,131 points, or 2.2%, the S&P 500 had gained 1.6% and the Nasdaq Composite was up 2%, according to CNBC figures relayed by StockTitan.
Large technology names led the move. Amazon rose 8.1%, Microsoft 6.7%, Apple 6.3% and Alphabet 5.0% in the first half hour, while Nvidia slipped 0.6%. First Solar gained 12.6%. Index futures had been weaker overnight on uncertainty over taxes, spending, AI and Big Tech regulation, Fox Business reported, before recovering. President Trump said he would accept the results and work with Democrats.
Rates helped. The 10-year Treasury yield fell 6 basis points to 4.906% in early Wednesday trading, Fox Business reported, and the dollar index slipped 0.32%. Gold gained 2.9% and silver 4.4% by 5:05 a.m. ET, per CNBC. Separate data showed ADP counted 86,000 private-sector jobs added in October, above the 75,000 economists had forecast.
For funds and allocators, history offers context but not a promise. Ned Davis Research found the S&P 500 rose through year-end in five of eight midterm cycles since 1930 in which the president's party lost the House, Fox Business reported. Watch whether the rally holds as policy details emerge, in particular any scrutiny of AI and Big Tech, and whether the 10-year yield stays below 5%.