US stocks jump after Democrats take Congress

Stock prices in the United States jumped sharply on Wednesday after President Donald Trump's party lost its exclusive control of Washington in the midterm elections. The S&P 500 gained 119.70 points, or 1.6%, to close at 7,688.62. That marked its best single day in three months.

The Dow Jones Industrial Average led the rally with a surge of 1,569.40 points, a 3% increase, ending at 53,356.12. The Nasdaq composite index also climbed, adding 364.50 points or 1.4% to reach 25,736.51. Hospital owners and discount retailers that serve lower-income Americans drove much of the broad market advance following the national losses for Republicans.

Energy prices fell as investors reacted to the political shift. Brent crude oil dropped below $95 per barrel, hitting its lowest level in two months. Vice President JD Vance attributed the Republican losses to the war in Iran, which had previously driven up petroleum prices. The decline in oil costs hurt major energy companies. ExxonMobil shares fell 4.6%, while ConocoPhillips dropped 5.2%.

Businesses tied to President Trump faced significant declines. Trump Media & Technology Group, the parent company of Truth Social, was one of the market's biggest losers, plunging 24.5%. Its stock price fell to $4.49. Tesla shares dropped 3.3%, and SpaceX declined 3.8%. Elon Musk, a major donor to the Republican Party, is among the potential targets for investigations by the new Democratic-controlled Congress.

Healthcare and discount retail stocks benefited from expectations of policy changes. HCA Healthcare, which operates hospitals and outpatient centers, rose 10.3%. Dollar Tree, which focuses on budget-conscious consumers, increased 9.6%. These gains followed hopes that Democrats might reverse some federal healthcare and food assistance cuts previously approved by Republicans.

Bond yields decreased as lower oil prices eased inflation concerns. The 10-year Treasury yield fell from 4.95% to 4.88% late Tuesday. Investors appear to see less risk of further deficit expansion with a divided government. Global markets generally followed the US lead, with stocks rising in Paris, Shanghai, and London. Japan's Nikkei 225 index was the exception, falling 1.4%.