The key facts

  • The Democrats won a majority in the Senate and the House of Representatives, creating a 'divided government' for the rest of Donald Trump's second term.
  • The Dow Jones rose 3.03% to 53,356.12 — above 53,000 for the first time since September 8; Brent fell by more than 8% to about $94.60.
  • Trump said he was ready to accept the results and work with the Democrats; the VIX volatility index fell 20.26%.

Record day on Wall Street after the elections

US stock indices closed sharply higher on Wednesday following the results of the midterm elections, in which the Democrats, according to Anadolu, won a majority in both chambers of Congress, stripping Republicans of control over the legislative branch. The Dow Jones Industrial Average gained 1,569.40 points, or 3.03%, to 53,356.12 — the index's strongest daily gain since April 2025 — and the index rose above the 53,000 mark for the first time since September 8. The S&P 500 rose 1.58% to 7,688.62, and the Nasdaq Composite gained 1.44% to 25,736.51.

Divided government and Trump's reaction

The elections ended Republican control of Congress and created a 'divided government' for the remainder of President Donald Trump's second term. The Democrats also won a number of gubernatorial races: in Texas, Gina Ortiz Jones defeated incumbent Republican Governor Greg Abbott, ending more than three decades of Republican rule in that state. According to Anadolu, Trump said he was ready to accept the election results and work with the Democrats, which eased concerns about prolonged political uncertainty.

Oil fell by more than 8%

Energy prices fell sharply: the market expects the new balance in Congress to increase pressure on Washington toward a diplomatic resolution of the US-Israeli war with Iran. Brent fell by more than 8% to about $94.60 per barrel, and WTI to around $88.60. Vice President JD Vance attributed the Republicans' losses in part to the war in Iran, which, according to the outlet, reinforced expectations of pressure on the administration to end the conflict. The prospect of cheaper energy also supported forecasts of easing inflationary pressure.

Europe and individual sectors

The rally also spread to European markets: the Stoxx Europe 600 index gained 1.82% to 657.40 points, with Spain leading — the IBEX 35 rose 3% to 19,370.90; the DAX added 2.22%, the FTSE MIB 2.18%, the CAC 40 1.96%, and the FTSE 100 1.79%. The euro strengthened 0.32% to $1.123. In the US, financial and consumer stocks rose: Walmart by about 4%, Bank of America by roughly 3%. At the same time, shares of a number of artificial intelligence infrastructure companies came under pressure amid concerns that Democratic control of Congress would lead to stricter oversight of data centers and their environmental impact. The VIX volatility index, Wall Street's 'fear gauge,' plunged 20.26% to 16.61.