NEW YORK, Nov. 4, 2026 — U.S. stocks surged Wednesday after Democrats secured majorities in both the House and Senate in the midterm elections, lifting investor sentiment. A sharp drop in oil prices added to the rally, with the Dow Jones Industrial Average rising more than 1,500 points in intraday trading.

The Dow rose 1,511 points, or 2.9%, moving above 53,000 for the first time since Sept. 8. The index was on track for its best single-day performance since April 9, 2025, when President Donald Trump announced a pause on some reciprocal tariffs. The S&P 500 gained 1.8%, while the Nasdaq Composite rose 1.9%.

U.S. crude futures fell more than 8% Wednesday. In comparison, Brent crude futures also dropped more than 8%, falling below $100 a barrel for the first time since Oct. 7. The declines followed Vice President JD Vance's comments linking Republican election losses to the war in Iran, which has contributed to higher energy costs and inflation concerns.

Democrats won majorities in the House of Representatives and Senate and secured victories in several gubernatorial races, including Texas, Georgia and Ohio. Their congressional gains will give the party greater authority to scrutinize Trump's policies on taxation, trade and foreign affairs. Investors had been concerned about the administration's tariffs and the economic consequences of the conflict in Iran.

Trump told The New York Times he was “absolutely willing” to accept the election results. He also told The Wall Street Journal that Republicans would work with Democrats.

Investors responded positively to the prospect of divided government, which could limit either party's ability to enact major policy changes affecting businesses and financial markets.

Andrew Slimmon of Morgan Stanley Investment Management said investors generally favor divided government because it limits the ability of either party to push through extensive policy changes. “They like gridlock — they don’t like a party with too much power,” he said.

Photo credit: NYT

Renewable Energy Stocks Rise

Renewable energy stocks were among Wednesday’s biggest gainers. First Solar gained about 11%, while Sunrun, Nextpower and other clean-energy companies also advanced as investors anticipated federal policies more favorable to renewable energy under Democratic control of Congress.

Healthcare stocks also posted gains, with hospital operators and health insurers among the companies benefiting from the election results. Amazon, Apple and Microsoft shares advanced, although Nvidia declined.

Companies involved in developing and operating AI data centers faced selling as investors assessed the possibility of tighter restrictions on new projects. CoreWeave, IREN, Hut 8, Applied Digital and Core Scientific were among the companies whose shares declined.

The results of gubernatorial races in Texas, Georgia and Ohio added to concerns about data center development. In Texas, newly elected Gov. Gina Hinojosa has pledged an immediate moratorium on data center projects. Voters in at least 10 towns also approved ballot measures to ban or restrict data center development.