U.S. stocks surged on Wednesday following the midterm elections, which ended Republican control of Washington. The S&P 500 climbed 1.8%, the Dow Jones Industrial Average soared 1,524 points (2.9%), and the Nasdaq composite rose 2.1%. Investors focused on sectors like solar power, dollar stores, and healthcare, while stocks tied to Trump, AI, and defense saw declines.
Trump Media & Technology Group dropped 12.2%, and Tesla fell 3.4%, reflecting concerns over potential Democratic investigations. AI-related stocks also struggled, with Nvidia down 1.3% and CoreWeave sinking 9.2%. Meanwhile, defense stocks like Lockheed Martin and Northrop Grumman declined as investors anticipated a shift in U.S. foreign policy.
Green energy companies rallied, with First Solar up 9.4% and Enphase Energy climbing 9.8%. Oil prices tumbled, with Brent crude falling below $100 for the first time in nearly a month. Healthcare and retail stocks also gained, as investors bet on policies to support lower-income Americans.
Analysts noted that while elections can influence short-term market moves, long-term performance depends more on corporate earnings and interest rates. Some strategists warned of potential disruptions from Trump, while others hoped for a more conciliatory approach.