Stocks surged on Wednesday after Democrats won commanding victories in key races across the country, making it immediately clear to investors which party would control the House and Senate.
\n\nThe tech-heavy Nasdaq Composite closed higher by 1.4%. The broader S&P 500 surged 1.58%, its best day since August. The Russell 2000, which tracks small and medium sized companies, soared 1.5%. The Dow rocketed higher by 1,569 points, its best day since April 2025.
\n\nA few stocks missed out on the rally, though, most glaringly those of SpaceX and Tesla, which are run by Elon Musk, who spent hundreds of millions of dollars backing Republicans in the midterms.
\n\nWall Street welcomed the clarity of the election results, which marked a departure from previous years in which it took several days for decisive projections.
\n\n“The combination of a large Democratic majority in Congress and President Trump’s statement that he is willing to work with the opposition should act as a break on extreme policy outcomes and bring down risk premia,” said Deutsche Bank’s George Saravelos in a note Wednesday morning.
\n\n“The market is increasingly likely to interpret surprising policy shifts from the Executive as time-bound by the next Presidential election or the…
Original source: https://www.nbcnews.com/