Wall Street rallies as Democrats win Congress, oil drops
Wall Street stocks rallied Wednesday after Democrats won control of both chambers of Congress in the U.S. midterm elections, reducing political uncertainty and boosting investor buying. A sharp drop in oil prices also supported the broad market. The Dow Jones Industrial Average rose 3.03%, or 1,569.40 points, closing at 53,356.12, its strongest daily performance since April 9, 2025. The S&P 500 gained 1.58% to 7,688.62, while the Nasdaq Composite climbed 1.44% to 25,736.51. Oil futures fell over 8% amid hopes for an end to the Iran conflict. Democratic victories are expected to create a divided government, potentially limiting the administration's policy agenda on taxes, tariffs, and energy. AI infrastructure stocks fell on regulatory concerns, including Texas Governor-elect Gina Hinojosa's pledge for a data center moratorium, while large tech firms like Amazon and Meta rose.