Stocks rally across the board as Democrats take control of House.
U.S. stocks surged on Wednesday, as investors reacted to midterm election results that saw Democrats take control of the House of Representatives.
All of Wall Street’s major indexes put up huge gains mid-week The large-cap S&P 500 Index (NYSEARCA:SPY) climbed 2.1% to 2,813.87. The Dow Jones Industrial Average (NYSEARCA:DIA) surged 545.63 points, or 2.1%, to 26,180.64. Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) gained 2.6% to close at 7,570.75.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) declined sharply on Wednesday, as investors rejoiced in the post-election outcome. The VIX fell 16.4% to 16.64 on a scale of 1-100 where 20 represents the historic mean.
In political news, the Republicans widened their majority in the Senate on Tuesday, while the Democrats won control of the House of Representatives. U.S. President Donald Trump declared victory in a post-election news conference, arguing that his party “dramatically outperformed historical precedents.”
In commodities, oil prices traded mixed to lower on Wednesday after U.S. government data showed a much bigger than expected rise in commercial crude inventories. The Energy Information Administration (EIA) said crude stockpiles rose by 5.78 million barrels in the latest week, more than double the rate analysts had expected.
U.S. West Texas Intermediate (WTI) for December settlement fell 34 cents, or 0.6%, to $61.87 a barrel on the New York Mercantile Exchange. ICE Brent, the international futures benchmark, was little changed at $72.16 a barrel.
The Final Word: A divided Congress could undermine the Trump administration’s effort to deliver on its platform. According to analysts, the first major test will be the United States-Mexico-Canada deal, which is expected to be signed into law later this year.