New York, Nov 4. (Xinhua/GNA) – U.S. stocks rallied sharply on Wednesday as investors digested the outcome of the U.S. midterm elections.
The Dow Jones Industrial Average rose 1,569.40 points, or 3.03 per cent, to 53,356.12. The S&P 500 added 119.70 points, or 1.58 per cent, to 7,688.62. The Nasdaq Composite Index increased by 364.50 points, or 1.44 per cent, to 25,736.51.
Nine of the 11 primary S&P 500 sectors ended in the green, with consumer discretionary and financials leading the gainers by going up 4.27 per cent and 3.46 per cent, respectively. Meanwhile, energy and industrials led the laggards by losing 4.77 per cent and 1.11 per cent, respectively.
Wall Street digested the midterm election outcomes as investors reassessed the balance of power in Congress.
While semiconductor leaders Nvidia and Micron Technology came under pressure amid concerns over potential restrictions on data centre development, mega-cap technology firms surged to new heights. Microsoft, Amazon and Apple jumped over 5 per cent, with Apple and Microsoft both setting fresh all-time highs.
Cyclical and defensive stalwarts heavily boosted the Dow Jones Industrial Average. Conglomerate 3M led the index by jumping 9.55 per cent, while McDonald’s and biopharmaceutical maker Amgen advanced 6.53 per cent and 3.73 per cent, respectively, following strong quarterly financial reports.
Commodity markets also saw a sharp retreat in prices, alleviating persistent cost-of-living concerns.
Brent crude oil futures dropped over 8 per cent to settle at 94.62 U.S. dollars per barrel on the London ICE Futures Exchange, amid market expectations that the election outcome could intensify domestic and diplomatic pressure toward resolving conflicts in the Middle East.
Analysts noted that voter dissatisfaction with elevated fuel prices and broader inflation could push policymakers toward de-escalation.
On the macroeconomic front, survey data released on Wednesday signalled cooling momentum across the domestic services economy.
Readings from the Institute for Supply Management and S&P Global showed that U.S. services activity expanded at a slower pace in October, as firms continued to confront elevated operating costs and supply chain constraints.
Looking ahead, financial markets are closely assessing the post-election U.S. landscape for potential legislative and regulatory developments in key sectors, particularly residential housing affordability, pharmaceutical pricing, and environmental rules governing AI energy consumption.
GNA