Wall Street rallies as Democrats win Congress, oil and chip stocks fall

Wall Street rallied sharply Wednesday after Democrats won control of both chambers of Congress in the midterm elections, ending political uncertainty and easing concerns about the federal deficit. The Democratic victory tempered fears of new spending or tax cuts, while oil prices plunged 8.3% to $88.23 per barrel after Donald Trump signaled no immediate military escalation against Iran. Treasury yields fell, and consumer cyclical stocks surged 4.6% on expectations of lower energy costs. Semiconductor stocks continued their correction, with the SOX index down 3.5%, as investors questioned AI investment profitability. Defense and energy sectors declined, while healthcare and renewable energy gained. ADP data showed 86,000 private jobs added in October, beating expectations.