Dow Jones Industrial Average gained 1,569.40 points or 3.03%, finishing the trading session
at 53,356.12.
The biggest one-day jump of all times was recorded on this day, and this was the most
successful day since April 9, 2025.
The next day after midterms, Wall Street celebrated
because the results of the vote were quite clear and due to the decrease in the price of oil.
This article does not contain investment recommendations.
Below is the data for the performance of major market indexes in the United States,
according to CNBC and TheStreet:
- Dow Jones Industrial Average: Up
1,569.40 points, or 3.03% to 53,356.12.
- S&P 500:Up 119.70 points, or 1.58% to 7,688.62.
- Nasdaq Composite: Up 364.50 points, or 1.44% to 25,736.51.
- Russell 2000: Up 44.51 points, or 1.58% to 2,856.96.
Dow Jones Index crossed above the mark of 53,000 for the first time since September 8. As
per Yahoo Finance, it was the best post-election performance in 44 years. It was the highest
point gained a day after an election previously when the stock index rose by around 1,500
points after President Donald Trump's election in November 2024.
The first reason is politics. Democrats took control of both houses and were able to secure
gubernatorial races, such as that of Texas, in the midterm elections on Tuesday.
In addition, President Donald Trump confirmed that he will accept the outcome, taking away
the political uncertainty clouding Wall Street. The second reason was a decrease in oil
prices, with WTI falling by 8%.
CNBC and other media stated that investors tend to prefer clear election outcomes, while
the VIX index dropped by 20.26% to reach 16.61. Furthermore, experts suggested that the
result may decrease the risk of policy changes, even though the market reaction does not
imply the outcome being either positive or negative for the country.
The Dow's gain was broad, with gainers outnumbering decliners by about three to one and
only four of the 30 stocks ending lower, according to TheStreet. Among the leaders:
- Microsoft: Up about 7%, helped by investor attention after its recent $25 billion bond sale.
- Amazon:Up between 6% and 7%.
- Apple: Up about 5% to 6%, closing at a record high.
- 3M: Up 9.66% to $194.16, the best performer in the index, according to Investing.com.
- Alphabet: Up about 4%.
Energy was the weakest sector, down 4.74%, as oil prices fell. Chevron lost 3.69% in the
Dow, and Caterpillar dropped 5.23%. Industrials fell 1.09% as a group, while the technology
sector was roughly flat, with chip, data center and neocloud stocks declining even as the
largest tech companies rose.
Results from individual companies also influenced the stock market. The stock of Kyndryl
climbed 30.14%, posting an adjusted profit of 42 cents per share when analysts estimated
earnings at 41 cents per share.
It posted $4.1 billion in quarterly signings. Duolingo shot up 25.99% on better-than-expected
revenues and a 29% increase in daily active users.
On Tuesday, the S&P 500 and the Nasdaq reversed their losing streak of three sessions,
while the Dow ended flat. Futures indicated a positive start for Wednesday, and the Dow was
trading above the 1,000-point mark right after the bell rang.
Market commentators warned against reading too much into one day. Yahoo Finance noted
that a strong session does not necessarily signal the start of a sustained advance,
and that the next test will be whether improving sentiment is supported by corporate
earnings and economic growth.
The new Congress is also expected to bring policy
questions, including on tariffs, taxes and spending, that could affect markets in the months
ahead
Investors will focus on the rest of the earnings announcements during the quarter, economic
data concerning inflation and job creation, and communications by the Fed. The prices of oil
will also play a crucial role in influencing energy companies as well as in inflation
expectations.
Finally, traders also await information about how the new political landscape in Washington
may affect the lawmaking process in 2027.
