Stocks soar after Democrats take control of Congress

November 4, 2026 / 10:05 AM EST / CBS News

The U.S. stock market surged on Wednesday as investors digested the impact of the Democrats' sweeping victories in the midterm congressional elections.

The blue-chip Dow Jones Industrial Average soared more than 1,200 points, or 2.4%, shortly after trading opened, while the broader S&P 500 and tech-heavy Nasdaq Composite Index rose 1.7% and 2.1%, respectively.

The shifting political winds could affect a range of issues that influence investment returns, from the pace of the data center buildout and cryptocurrency industry regulation to proposals to cap credit card interest rates.

At the same time, Wall Street analysts do not expect the outcome to derail a stock market being driven more by robust corporate profits and solid economic growth than by politics.

"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 said in a note to investors.

Investors also expect the election results to heighten gridlock in Congress, with Democratic lawmakers now in control of both…

Original source: https://www.cbsnews.com/moneywatch/