Wall Street’s major indexes rose on Wednesday following the US midterm elections. The Dow Jones Industrial Average gained 3% to close at 53,356 points, while the S&P 500 advanced 1.6% to 7,689. The Nasdaq Composite added 1.4% to 25,737, and the Nasdaq 100 finished 0.9% higher at 28,437.
Democrats won majorities in both chambers of Congress, giving them the ability to make it harder for President Donald Trump to advance his agenda. Investors may be less concerned about unpredictable policy decisions as a result, according to market analysts quoted in the report.
Terry Sandven, chief investment strategist at U.S. Bank Wealth Management, said the election result offered greater clarity and reduced uncertainty, conditions that are often favorable for share prices. Thomas Altmann, a portfolio manager at QC Markets, described the outcome as placing “political handcuffs” on the president. Consorbank chief market analyst Jochen Stanzl also said political uncertainty could ease.
All 435 seats in the House of Representatives and 35 of the Senate’s 100 seats were contested. Republicans entered the election with 53 Senate seats. Before all races had been counted, projections put The Democrats at 54 seats, with the possibility of gaining more.
Sources: Handelsblatt.