FX.co ★ US Stocks Rally After Democratic Victory

US equities rallied sharply on Wednesday, with the S&P 500 climbing 1.2%, the Nasdaq advancing 1.1% and the Dow Jones surging by 1,100 points. The gains followed a Democratic sweep of both chambers of Congress and President Trump’s acceptance of the election results, developments that helped ease political uncertainty and perceived market risk.

Although unified Democratic control raises the likelihood of tighter regulatory scrutiny—particularly in the AI sector—it is also expected to narrow the scope for additional tax cuts and large-scale fiscal stimulus. At the same time, the increased potential for political gridlock could limit Trump’s policy agenda, including his stance on tariffs and relations with Iran.

Shares of companies viewed as likely beneficiaries of Democratic policy priorities moved higher, with health insurers and hospital operators among the notable gainers. Energy stocks, by contrast, were the session’s weakest performers.

Among major individual names, Apple and Microsoft each gained 4.6%, Amazon rose 6.4%, JPMorgan added 2.6%, and Eli Lilly was up 1.6%. In contrast, Tesla fell 5.4%, Nvidia declined 2.6%, Micron lost 3.9%, and ExxonMobil dropped 3.6%.