Stock market surges after Democrats' midterm wins

On November 3, 2026, Democrats swept the U.S. midterm elections, winning control of both the House of Representatives and the Senate, marking a significant shift in power from the previously dominant Republicans. This outcome was seen as a direct referendum on President Donald Trump's second term policies, particularly his handling of domestic issues like inflation and international conflicts such as the war against Iran. Markets responded positively to the election results, with the Dow Jones Industrial Average, Nasdaq, and S&P 500 all opening higher on November 4th. Analysts predicted that a weakened Trump in his final two years would likely lead to more cautious economic policies and increased market volatility.