Economy & Fed
Dow rallies after Democrats win control of both chambers of Congress
The State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE Arca: DIA) tracks the blue-chip Dow. It surged 3.1% on Wednesday. The trigger was Tuesday's midterm elections, which gave Democrats control of both chambers of Congress. The bet behind the rally: a divided Washington could make big policy changes harder to pass and bring more political certainty. By the afternoon, the Dow was on course for its best day since April 9, 2025, when President Donald Trump paused his reciprocal tariffs.
Oil moved the other way. West Texas Intermediate crude, the U.S. benchmark, fell 7.5% to $88.84 a barrel, and the energy sector fund tumbled 4.7% with it. The financial sector fund surged 3.5% and the communication services fund 3.5%. The technology sector fund was little changed. On $100,000, the Dow fund added $3,100, against $1,580 for an S&P 500 fund.
For readers
What it means for you: The Dow's rally after Democrats won both chambers of Congress skipped the industrial sector fund, which lost $1,090 on every $100,000 held. Health care funds went the other way, adding $3,060 on the same stake, and consumer staples funds added $3,360. For a broad holder, $100,000 in an S&P 500 fund has added $1,430 so far this week. The question is whether the bet on a divided Washington holds up against fresh data; October consumer prices, due Tuesday, Nov. 10, at 8:30 a.m. ET, may answer it.
The numbers
| S&P 500 change | +1.58% |
|---|---|
| 10-year Treasury yield | 4.90% |
Wednesday’s close
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Not investment advice.
