US Stocks Rally Following Democratic Midterm Sweep and Control of Congress
US stock markets surged on Wednesday, led by a sharp jump in the Dow Jones Industrial Average and robust gains across major indexes following a seismic midterm election outcome. Democrats won control of both chambers of Congress, creating a divided government and sparking a major rebound after an initial knee-jerk sell-off as investors digested the political shift.
The political outcome created distinct winners and losers across the technology sector. Chip stocks faced downward pressure—with companies like Nvidia and Micron falling over 1%—as markets anticipated that a Democratic-controlled Congress might pursue measures to restrict or slow data center buildouts. However, those losses were offset by strength in other parts of tech. Apple and Microsoft both hit all-time highs, with Apple shares jumping 6% as analysts viewed the company as a defensive safe haven from potential data center headwinds and memory input inflation.
Alongside election developments, investors on Wednesday parsed a fresh round of corporate earnings reports and economic indicators. Data from the Institute for Supply Management and S&P Global showed that US services activity expanded at a slower pace in October as businesses continued navigating elevated costs and supply chain disruptions.
