Stocks jump the day after Democrats sweep Congress, as Trump says he accepts the results
Two CNBC pieces explain why Wall Street cheered a divided government, and why big cloud companies rose while smaller AI cloud firms fell.
US stocks rallied on Wednesday, November 4, after Democrats won control of both the House and the Senate in Tuesday's midterm elections. The S&P 500 gained more than 1%. CNBC reports that strategists credited President Trump's statement overnight, to The New York Times and The Wall Street Journal, that he accepted the results and would work with Democrats, which eased fears of a drawn-out fight over the outcome.
The biggest tech companies led: during the session Amazon rose 8%, Alphabet more than 6%, Apple nearly 7%, Microsoft 4% and Meta 3%. JPMorgan Asset Management's David Kelly said divided government means 'moderation in growth, moderation in inflation, less uncertainty.' Stocks tied to the AI data center buildout and to Elon Musk fell: CoreWeave dropped 10%, after voters sided against data centers in 40 of 41 local ballot measures, according to CNBC.
The rally did not last: the next day the market gave back those gains and more.
Across the spectrum 3
Democrat
Asked how he will work with President Trump after Democrats won the House, Hakeem Jeffries said: "We are ready, willing, and able to find bipartisan common ground with the other side of the aisle, as long as we can bring about meaningful change on the issues that matter, and that begins with decisively addressing the affordability crisis."
CNBC ↗Libertarian
On election night, Reason's Eric Boehm compared the Democratic sweep of both chambers to 2006, blaming Trump's "tariffs," "war" and "centralization of power," and argued Trump "is now firmly into his lame-duck era" and that "both his party and the country will likely be better off as a result."
Reason ↗Republican
Asked on election night by Fox News' Bret Baier whether he would accept the midterm results, President Trump said: "Yes, sure I'll accept them. Why wouldn't I?"
CBS News ↗