U.S. stocks surged Wednesday, Nov. 4, after Democrats secured majorities in both chambers of Congress, as investors weighed potential policy shifts and technology shares rose while data-center developers fell.
The Associated Press reported the Dow Jones Industrial Average gained 1,569.40 points, or 3%, to 53,356.12 at the regular-session close. The S&P 500 rose 119.70 points, or 1.6%, to 7,688.62, while the Nasdaq Composite added 364.50 points, or 1.4%, to 25,736.51. The Economic Times’ live blog reported different closing levels for the Dow and S&P 500: 53,362.57 and 7,688.73, respectively. Both accounts gave the same Nasdaq close.
The AP said Democrats had a majority in the 435-member House and at least 54 of the Senate’s 100 seats. As of 4 p.m. ET, 59 House races affecting individual seats remained uncalled, the AP reported. Anadolu said Democrats’ numbers in both chambers would be enough to defeat legislation supported by the White House.
In an early-session snapshot with no time specified, Anadolu put the Dow at 52,828.73, up 2.01%. The S&P 500 and Nasdaq were each up 1.22%, and the Cboe Volatility Index fell 14.83% to 17.74. A Reuters market report carried by Fidelity put the Dow at 52,784.48, up 997.76 points, or 1.93%, at 9:37 a.m. ET.
Reuters reported that Amazon gained 7.4%, while Meta Platforms, Alphabet and Microsoft rose between 2% and 6.3%. Data-center developers Applied Digital and Iren fell between 6% and 13% as investors considered possible limits on new construction. Art Hogan, chief market strategist at B. Riley Wealth, told Reuters there could be “a bit of a slowdown” in future data-center development. Reuters said limits on new projects could hurt smaller developers that rely on debt to expand; Hogan said slower construction could make existing data centers more valuable.
The AP reported First Solar rose 4.6%, Enphase Energy gained 3.7%, HCA Healthcare advanced 10.3% and Dollar Tree rose 9.6%. Brian Jacobsen, chief economic strategist at Annex Wealth Management, told the AP, “Earnings trump elections.” The AP cited a pattern of strong U.S. stock performance in the months after midterm elections, regardless of which party wins. The incoming Congress is scheduled to convene in January.
