Wall Street rallies as Democrats win US midterm elections

Wall Street closed sharply higher Wednesday, celebrating the Democrats' decisive victory in the U.S. midterm elections, which removed political uncertainty and raised hopes for Middle East de-escalation. The Dow Jones surged 3.03%, the Nasdaq gained 1.44%, and the S&P 500 rose 1.58%. The Democratic sweep of both Congressional chambers fueled a powerful rebound, driven by falling oil prices and a marked decline in interest rates. Analysts noted the victory could lead Democrats to limit war funding, potentially forcing Donald Trump to end the conflict, while divided governance is historically favorable for markets. Crude prices dropped over 8%, and the 10-year Treasury yield fell to 4.89%. However, semiconductor stocks closed lower on fears of stricter AI regulation, while major tech giants rose. Defense and oil companies were hit, and private payrolls data showed 86,000 jobs added in October.