US stocks were trading higher on Wednesday, supported by the midterm election results. Democratic gains raised hopes that the party could check President Donald Trump's policy agenda. The decline in crude oil prices and bond yields from recent highs also supported market sentiment.
The S&P 500 surged 1.8%, heading for its best single-day gain in three months. The Dow Jones Industrial Average was up 1,300 points, or 2.5%, at their day's highs, while the Nasdaq Composite gained 2.4%.
The Magnificent Seven stocks were among the top gainers, with Amazon rising 8%, while Apple and Microsoft advanced 6% each. Alphabet gained 5.7%, while Meta Platforms climbed 3.5%. The two exceptions were Elon Musk's Tesla, which fell 2%, and Nvidia, which declined 1%.
Meanwhile, SpaceX shares sank 3%. Musk, a former top adviser to President Donald Trump, is among those who could face investigations by a Democratic-controlled Congress.
Democrats reportedly scored victories in Republican strongholds across the country, flipping at least seven Senate seats and winning House races in districts that Republicans had easily carried in 2024.