Markets rise as Democrats sweep midterms Dow jumps more than 1200 points
US stocks jumped Wednesday after Democrats clinched a historic sweep of Congress on Tuesday, with the Dow Jones Industrial Average up more than 1,200 points, the S&P 500 rising 1.7% and the Nasdaq Composite up 2.1%.Analysts believe that a gridlocked Washington – with Democrats now in control in the House and Senate and President Trump in the White House – could limit whiplash from sharp policy shifts that can create uncertainty on Wall Street, according to Reuters.“Investors could conclude that Washington remains structurally constrained, limiting the prospects for dramatic shifts in the economic outlook,” Michael Krautzberger, an analyst at Allianz Global Investors, told the outlet. Markets tend to prefer a divided government because less sweeping policy changes won’t upend the economy. “The magnitude of the gains for the Democrats in the midterms does not change too much for the near-term policy outlook, given the party still lacks a filibuster-proof majority in the Senate and President Trump has veto power to block legislation,” Stephen Brown of Capital Economics told the Associated Press. Oil prices fell after the results with investors optimistic that Trump might rein in his foreign policy decisions after the election.Brent crude was down 0.7% to $102.87 and WTI dropped 0.2% to $94.97 a barrel.Investors are sifting through a slew of ballot proposals and candidate’s policy platform trying to get a clearer picture of how things might shake out politically over the next two years.
Data center concerns were a big topic among candidates in states like Texas and Georgia, and political pressure has made investors nervous, sources told Reuters.Morning Report delivers the latest news, videos, photos and more.
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Never miss a story.Futures tied to the tech-heavy Nasdaq fell as much as 2.4% ...