The stock market today is a very different picture from 24 hours ago. A tense, AI-driven selloff has given way to a broad rally on Wall Street, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all firmly higher after the U.S. midterm elections handed Democrats control of Congress.
Stock market today: where the major indexes stand
US stocks soared Wednesday as Wall Street digested the Democratic sweep and weighed what a divided government could mean for President Donald Trump’s policy agenda and for the AI trade. The Dow surged about 1,240 points, or 2.4%, heading for its best day since April, while the S&P 500 and Nasdaq Composite each gained 1.4%. Bloomberg reported that the S&P 500 was up more than 1.5% and set for its best session in three months, with a gauge of tech megacaps rallying 3%.
The turnaround is striking because of how the day started. Early in the session the S&P 500 was up 1.16%, the Dow 1.90% and the Nasdaq 1.21%, while the small-cap Russell 2000 gained only 0.23%. The gains widened as the morning went on and the biggest technology names caught up.
For context, the market closed Tuesday without much conviction. The Dow slipped 197.26 points, or 0.4%, to 51,786.72, the Nasdaq gained 0.8% to 25,372.01, and the S&P 500 added 0.4% to 7,568.92. The VIX, Wall Street’s fear gauge, closed at 20.83.
Why the stock market is up today
An election result that removed an unknown. Democrats won majorities in both the House and the Senate, according to projections reported by CNBC. Futures fell hard overnight, then recovered as the result became clear. Worries eased further after President Trump said he would accept the results and work with Democrats. In a call with CBS News, Trump congratulated Democrats, but he also warned that if they refused to cooperate, he would veto everything.
The gridlock argument: Analysts see a split government as good news for investors, because it lowers the odds of sweeping policy changes. Justin Buell of Continuity Group said stocks have historically tended to rally after the midterms regardless of the outcome, as fading uncertainty brings relief. Freedom Capital Markets’ Jay Woods told CNBC that gridlock has historically been good for the market.
A return to risk: Capital.com’s Daniela Hathorn described the initial reaction as risk-off, with a selloff in equities and the dollar and a rush into Treasuries and precious metals, before a relief rally took hold. She noted that the recovery in Nasdaq futures suggests investors are realising a change in congressional control does not automatically mean an immediate change in economic policy.
Big Tech joins the rally
Technology was the surprise laggard before the open, then caught up fast. StockTitan’s data showed Amazon up 8.12%, Microsoft up 6.67%, Apple up 6.25% and Alphabet up 5.01% shortly after 10 a.m. ET, while Nvidia slipped 0.56%.
That move follows a rough few weeks for tech. The Nasdaq-100 had closed more than 10% below its October 6 record high on Monday, which put it in correction territory. Chip stocks bounced Tuesday as bargain hunters returned, and the Philadelphia Semiconductor Index rose 3%.
AI remains the nervous part of the market. Investors worry that a Democratic Congress could bring tougher scrutiny of data centers and AI spending. Results in Texas added to that concern, where CNBC reported Democrat Gina Hinojosa won the governor’s race after pledging an immediate pause on data centers in the state. CoreWeave, Iren and Nebius fell on that fear.
Winners and losers from the election trade
Some of the biggest moves came from sectors with a direct stake in Washington’s direction:
Solar: First Solar rose more than 12% on hopes of a shift in energy policy.
Health: Hospital operator HCA Healthcare and insurer Centene both climbed after Democrats took control of Congress.
Defensives: A fund tracking consumer staples hit a record high on Wednesday morning, and Walmart and Bank of America led early gains as investors looked beyond tech.
Elon Musk’s companies: Tesla and SpaceX fell. Musk reportedly spent a record $474 million on the 2026 midterms, and both companies are Texas-based.
Trump Media: Shares dropped about 10% after Democrats were projected to win the House.
Earnings movers: AMD up, Amdocs and FIS hammered
It is also a heavy day for corporate results. AMD jumped almost 6% in premarket trading after beating third-quarter earnings and revenue forecasts, though StockTitan noted it later gave back ground. Duolingo, Alight, Cricut and LendingTree all surged on their quarterly numbers.
The pain was just as sharp elsewhere. Amdocs plunged more than 36% in premarket trading after a weak fiscal 2027 outlook and a legal dispute with T-Mobile, while FIS tumbled about 23% after cutting its full-year forecast and announcing that its chief financial officer would step down. Datadog fell nearly 10% on a flat revenue outlook.
On the corporate front, CVS Health said it plans to split into two publicly traded companies by the first half of 2028, separating its health insurance and benefits arm, which includes Aetna and Caremark, from its pharmacy business.
Oil, gold and the Iran backdrop
Commodities moved with the vote. West Texas Intermediate slipped 0.85% to $95.27 a barrel and Brent fell 1.21% to $102.30 early in the day, as signs of US-Iran diplomacy and the election results weighed on crude. Shipping in the Strait of Hormuz is still under threat, though, with Iran’s Revolutionary Guard saying four tankers caught fire after hitting mines. (thestreet)
Gold futures rose 2.86% to $4,052.90 an ounce, and silver climbed 4.94% to $52.21.
Jobs data and what to watch next
A private-sector report gave markets a small lift. ADP said companies added 86,000 jobs in October, above the 75,000 expected by economists polled by Dow Jones. The bigger test comes Friday, November 6, at 8:30 a.m. ET, when the government releases its October jobs report.
Before then, traders will track Arm, Qualcomm, McKesson and AppLovin, which report after the close. Official counts in several races, including the Texas governor’s contest, are still to come.
The next question is whether the rally can hold. Markets often bounce when uncertainty clears, but the same AI and oil concerns that drove last month’s selloff are still there. As always, daily moves like this one are no guide to what comes next, and nothing here is investment advice.
