Stocks climb as Democrats take control of Congress

U.S. stocks rose on Wednesday as Democrats appeared set to win Congress, with investors welcoming the end of election uncertainty.

U.S. stocks climbed on Wednesday as it became clear Democrats were set to take control of Congress, New York Times reported. The S&P 500 rose 1.8 percent in afternoon trading, heading for its biggest daily gain in months. Analysts said investors welcomed the end of election uncertainty, while gridlock in Washington often lets markets focus on fundamentals.

“Stocks are breathing a big sigh of relief this morning, as the midterms are finally done,” said Ryan Detrick, chief market strategist at Carson Group. Alphabet, Amazon, Meta and Microsoft rose, but CoreWeave lost nearly 10 percent, while Tesla and SpaceX tumbled. Industrials and energy were the only S&P 500 sectors to fall.

Brent crude fell sharply to around $94 a barrel, while the 10-year Treasury yield dropped to 4.89 percent. Some analysts cautioned the rally may not last long. Strategists at Amundi Investment Solutions wrote: “In prior cycles, gridlock was a relief trade. At current yield levels, it may not be.”