Stock market today: Dow surges 1,500 points, S&P 500 and Nasdaq rally following historic midterm election
US stocks jumped on Wednesday after Democrats won control of both chambers of Congress in a seismic midterm election, paving the way for a divided government.
The Dow Jones Industrial Average (^DJI) rose 3%, or over 1,500 points, marking its best single-day performance since President Trump paused a sweeping tariff rollout in April 2025. The S&P 500 (^GSPC) climbed 1.6%. The Nasdaq Composite (^IXIC) traded up by 1.4% amid a post-election relief rally.
Markets swiftly repriced a Democratic sweep of the House and Senate — and the potential for ballot measures and newly elected officials to restrict data center construction. Chip stocks, including Nvidia (NVDA) and Micron (MU), fell. Meanwhile, other parts of the tech sector offset some of those losses, with Apple (AAPL) and Microsoft (MSFT) each hitting all-time highs.
Oil prices plunged as the midterm election outcome also raised hopes for an end to the war in the Middle East. Brent crude oil futures (BZ=F) dropped 8% to around $95 per barrel.
Investors will also be watching in the coming weeks for policy actions on housing and pharmaceuticals in the aftermath of the election. As Yahoo Finance’s Jared Blikre pointed out on Tuesday, midterm elections have a history of shaping stock performance in the near term but don’t tend to move markets much over the long term.
On the economic front, ISM and S&P data showed that US services activity expanded at a slower pace in October as businesses continued to grapple with elevated costs. Private-sector hiring, meanwhile, continued to show strength in October as an ADP report indicated “pretty solid job growth.”
Earnings continue to roll in. AMD (AMD) posted a Q3 earnings beat, while McDonald’s (MCD) grappled with slowing same-store sales growth. Duolingo (DUOL) stock soared over 30% on strong user growth.
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Dow surges 3% as stocks rally after midterm elections
US stocks rallied Wednesday after Democrats won control of both chambers of Congress, as investors embraced the prospect of divided government and rotated into several of the market’s biggest technology names.
The Dow Jones Industrial Average (^DJI) rose 3%, marking its best single-day performance since President Trump paused a sweeping tariff rollout in April 2025.
Meanwhile, the S&P 500 (^GSPC) gained 1.5%, and the tech-heavy Nasdaq Composite (^IXIC) climbed 1.4%.
Oil prices plunged amid the rally in stocks, with West Texas Intermediate crude (CL=F) falling more than 7.7% below $90 a barrel.
53,356.12 +1,569.40 (+3.03%)
At close: 4:20:01 PM EST
^DJI ^GSPC ^IXIC
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Duolingo stock soars 30% after Q3 earnings give shares a much-needed jolt
Duolingo (DUOL) stock has recovered nearly all of its year-to-date losses after a strong earnings report eased concerns about the company’s growth. Shares of the language learning app are up nearly 30% on the day.
In the third quarter, Duolingo reported that its daily active users (DAUs) rose 29% year over year to 64.9 million. Paid subscribers for the language learning platform grew 14% annually to 13.1 million.
Investors also cheered management’s note that the company will be “gradually leaning more into monetization in ways that preserve the quality of our free experience.”
“In our view, the quarter begins to address the primary investor concern following second-quarter results: whether accelerating engagement can translate into stronger monetization,” William Blair analysts led by Ralph Schackart wrote in a note. “DAU growth accelerated for a second consecutive quarter, subscription bookings reaccelerated meaningfully, and management expects paid-subscriber growth to bottom in a couple of quarters as the stronger bookings trajectory flows through revenue.”
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Stocks rise but fueled by cyclical and defensive sectors
The S&P 500 (^GSPC) climbed on Wednesday, powered by cyclical and defensive stocks.
Consumer Discretionary, which houses e-commerce giant Amazon (AMZN), led the gains, followed closely by Communications Services, which includes tech giant Alphabet (GOOG, GOOGL). Shares of Amazon rallied 7% while Alphabet rose more than 4%.
Financials (XLF) also rallied, along with defensive sectors like Consumer Staples(XLP), Real Estate (XLRE), and Health Care (XLV).
Investors continued to rotate out of tech, even as it was up modestly on Wednesday. Political headwinds for the AI buildout and tumbling oil prices gave way to breadth outside semiconductor stocks, which have been the high fliers this year.
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Oil’s war premium is leaking out fast
Wall Street’s post-midterm party has two no-shows: the AI/chip trade and oil, which is having a far worse time.
West Texas Intermediate crude (CL=F) is back under $90 a barrel. It has given up about $15 since Friday’s $104 close and is on pace for its worst week since April 2020. The slide came as traders bet on an end to the Iran war after Tuesday’s elections.
The selling is spreading.
Brent (BZ=F) is near a two-month low. Gasoline futures (RB=F) are on track for their lowest close since March 10, which is welcome news for anyone driving to Thanksgiving dinner. Energy stocks (XLE) are down more than 5%, with refiners taking the biggest hit.
88.42 -7.67 (-7.98%)
As of 4:25:51 PM EST. Market Open.
Still, crude remains about 50% above where it started the year. US diesel stockpiles are at their lowest since 2003, and the Wells Fargo Investment Institute says gasoline and diesel supplies “remain constrained by the war.”
Nationwide’s Mark Hackett says oil is retreating “on hopes for a deescalation in the Iran conflict, even as the diplomatic signals remain ambiguous.”
Watch whether WTI settles under $90 at 2:30 p.m. ET.
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Trump Media stock plunges after Democrats sweep Congress
Voters on Tuesday delivered a stunning rebuke to the Trump agenda, but markets produced a referendum of their own — on the president’s eponymous stock, Hamza Shaban reports:
Trump Media & Technology Group (DJT) stock, the home of the president’s Truth Social platform, plunged over 12% during morning trading Wednesday. The ticker has served as a bellwether of the president’s power, reflecting his outsized influence over all things politics, and his ability to attract capital and attention.
But the election results have shifted the balance of power. Democratic victories in battleground states and formerly Trump-voting districts have shattered the GOP’s trifecta hold on Washington. And they have called into question Trump’s own standing and effectiveness as party leader, chief executive, and business mogul.
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Bitcoin rises above $80,000 as investors go risk-on
Bitcoin (BTC-USD) jumped 3%, and ethereum (ETH-USD) also rallied on Wednesday after Democrats took control of both chambers of Congress, even as the midterm outcome could complicate the crypto industry’s efforts to pass favorable legislation.
Bitcoin touched a six-week low before recovering to just above $80,000, moving back above its 50-day moving average. Ethereum also rallied, gaining 7% to trade above $2,400 as US equities broadly rallied and investors went risk-on.
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Uber stock rises despite weaker profit forecast
Uber (UBER) reported third quarter results on Wednesday that topped estimates, but rising costs and weakness in the Middle East are expected to hit Q4 profit performance, Yahoo Finance’s Pras Subramanian reports:
Uber stock rose 7% anyway.
Uber forecast fourth quarter adjusted EPS of $0.95 to $0.99, below estimates of $1.06. The company said the Middle East conflict was a 75-basis-point drag on mobility bookings and could be 100 basis points in Q4.
“Elevated fuel prices and tighter driver availability weighed on supply growth in several international markets,” CEO Dara Khosrowshahi said in a statement.
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AI’s circular financing is a ‘feature,’ not a bug, Wall Street bond committee tells Treasury
The cost of insuring AI borrowers’ debt has jumped as much as 80% since August.
The government’s top bond advisers say the money sloshing around the AI boom is built that way on purpose, and that it’s mostly fine — at least for now, Yahoo Finance’s Jared Blikre reports:
The Treasury Borrowing Advisory Committee, a panel of big-bank and investor executives that advises Treasury on how the US borrows, made AI debt one of its two research topics this quarter. Its presentation, out Wednesday, sums up the view in one slide title: “Circular Financing is a feature.”
That’s the loop of chipmakers, cloud companies and their biggest customers funding one another. The committee’s bet is that the hardware outlasts some of its buyers. “While some individual compute operators might not remain viable, the physical infrastructure will continue to find demand,” the presentation said.
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Apple, Microsoft hit all-time highs as Nasdaq surges 2% in post-election rally
Stocks surged on Wednesday, with most sectors green across the board after a Democratic mid-term election sweep.
Tech (XLK) bounced as Apple (AAPL) shares hit all-time highs, sending the iPhone maker’s market cap above $5 trillion. Microsoft (MSFT) also surged 6% to hit a new record. The Nasdaq (^IXIC) composite rallied more than 2%, while the Dow (^DJI) surged more than 1,100 points, or about 2%.
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Why the stock market is unexpectedly rallying in the wake of the Democratic blue wave
Call it a contrarian move, Yahoo Finance’s Brian Sozzi reports:
It has been a riveting 12 hours or so in the markets as investors slice and dice the midterm election outcomes.
Initially, stocks got hammered as the results trickled in. The thinking was that Democrats are less pro-business than Republicans, and since they will control the House and the Senate, there goes the corporate profit miracle that has driven the markets over the past two years.
But something very interesting has emerged after that initial knee-jerk reaction. Stocks are rallying on Wednesday — big-time!
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US services growth slows in October as inflation pressures persist
US services activity expanded at a slower pace in October as growth moderated and businesses continued to grapple with elevated costs and supply chain disruptions.
The Institute for Supply Management’s services index fell to 54.5 from 54.9 in September, missing economists’ expectations of 54.8, though still marking its 28th consecutive month in expansion territory.
New orders dropped 3.9 points to 55.9 as business activity ebbed. Employment picked up for a second consecutive month, with its index rising to 51.4 from 50.1.
Meanwhile, a measure of prices paid eased to 73.0 from 74.0 but remained elevated as businesses faced higher fuel costs, tariffs and shipping delays.
A separate survey from S&P Global also showed slower growth, with its services index falling to 56.1 from 58.8 in September. Businesses reported strong demand but raised selling prices more quickly as they passed on higher operating costs.
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Apple hits new high. Why the Democratic blue wave may be good for the stock.
Apple (AAPL) stock jumped 6% to a new all-time high on Wednesday as investors perceived the stock as a winner from the Democratic sweep in the midterm elections.
Yahoo Finance’s Brian Sozzi breaks down what analysts are saying is behind the move higher:
One winner could be Apple (AAPL) for two reasons, opined Evercore ISI analyst Amit Daryanani.
The first is more of a defensive play amid the unknown that is fresh D.C. gridlock.
“Apple offers a different earnings driver through iPhone mix/pricing and services rather than data-center construction; our work points to resilient demand, with gross-margin recovery and price elasticity the key tests. This is THE name to keep working when investors want to get defensive,” Daryanani said.
The other aspect is cooling memory chip prices, a major headwind for Apple, as data center projects get delayed or outright blocked by the Dems.
Daryanani added, “Memory input inflation (DRAM & NAND) has been a sizable headwind for a host of names in our coverage (AAPL for example, talked about 140bps GM headwind in Dec-qtr due to memory, but also PC names). Could a slowdown in DC buildouts actually temper memory demand and, in a way, help companies that have been impacted by the sizable memory inflation (AAPL is the key one but there are many others)?”
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US stocks open higher after Democrat midterm sweep
US stocks opened higher Wednesday as investors digested Democrats winning control of both chambers of Congress along with fresh earnings and economic data.
The Dow Jones Industrial Average (^DJI) rose 2%, while those on the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) climbed 1.1% each.
53,356.12 +1,569.40 (+3.03%)
At close: 4:20:01 PM EST
^DJI ^GSPC ^IXIC
Investors are also weighing what business policy shifts election results could bring to specific sectors, including possible moves on housing, pharmaceuticals, and data center construction. Chip stocks also came under pressure, with Nvidia (NVDA) and Micron (MU) lower, while AMD (AMD) slipped after its quarterly results.
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‘Pretty solid job growth:’ Private US employers added 86,000 jobs in October
Hiring in the private sector showed continued strength in October, according to payroll processor ADP, as employers across a variety of industries added roles, Yahoo Finance’s Claire Boston reports:
Private companies added 86,000 jobs this month, matching a revised 86,000 in September, data released Wednesday showed. Economists had been expecting a gain of 67,000 jobs.
Base wages for private-sector workers rose 3.2%, a figure that still trails inflation, while gross pay, which includes additional compensation such as overtime and bonuses, was up 4.7%.
“You have back-to-back, two consecutive straight months of pretty solid job growth,” ADP chief economist Nela Richardson said.
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Block stock jumps as Jack Dorsey’s AI bet shows signs of paying off
Eight months after Jack Dorsey made one of corporate America’s boldest bets on shrinking its workforce to prepare for the age of artificial intelligence, investors are finding more reasons to buy into the Silicon Valley billionaire’s pivot.
Shares of Dorsey’s Block (XYZ), the payments company behind Cash App and merchant processor Square, jumped 9% in premarket trading Wednesday after it reported better-than-expected third quarter earnings and raised its gross profit outlook for next year.
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McDonald’s Q3 sales growth slows amid tough consumer backdrop, new drinks push
McDonald’s (MCD) sales growth slowed in the third quarter as consumers faced a challenging economic backdrop and the fast food chain unveiled its growth strategy.
The results showed that same-store sales grew by 1.5% year over year, a tick above the 1.4% growth Wall Street expected, according to Bloomberg estimates. In Q3 last year, McDonald’s posted same-store sales growth of 3.6%.
In the US, the company posted a 0.2% decline in comparable sales, slightly narrower than the expected 0.5% drop. Data from Placer.ai showed visits to the Golden Arches declined from a year ago, but the company said customers spent more when they did go.
Promotions in October led to some strength ahead of the holiday season. CEO Chris Kempczinski said the company is “encouraged by improvement as the quarter progressed following our intervention on value.”
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CVS announces plan to split into 2 companies, separating pharmacy from insurance
CVS (CVS) announced plans to separate into two independent, publicly traded companies on Wednesday, reshaping one of the largest healthcare companies in the US.
The company intends to separate CVS Health’s insurance, pharmacy benefit management, and healthcare services operations from its retail pharmacy and community healthcare segments.
The planned separation represents a significant shift from CVS Health’s long-term strategy of bringing together insurance, pharmacy benefit management, and direct healthcare services under a single corporate structure.
Under the proposed structure, one company will retain the CVS Health name and house Aetna, CVS Caremark, CVS Specialty, Oak Street Health, and Signify Health.
The second entity, which will operate under the name CVS Pharmacy, will include approximately 9,000 retail pharmacy locations and MinuteClinic locations, among other services.
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Democrats won control of Congress. Their economic agenda is set to target healthcare, tariffs, and Trump’s allies.
Yahoo Finance’s Ben Werschkul reports:
Democrats retook power in Washington on Tuesday night after flipping key House and Senate seats to command majorities in both houses of Congress.
Democrats secured control of the Senate after winning races in historically red states including Texas, South Carolina, and Kansas.
The party was also “marching toward control of the U.S. House” late Tuesday night, according to the Associated Press, after flipping seats from Florida to New Jersey to Kentucky. All four major networks said Democrats’ control of the House was assured.
The power shift creates a new platform for Democrats to launch investigations of President Trump’s economic allies — Elon Musk to name one — and pass bills that may be unlikely to become law but will mark a sharp change in the political climate for business leaders and economic issues after two years of unified Republican control.
The change also appears set to elevate figures like Democratic Senator Elizabeth Warren and others to prominent positions with oversight over economic policy.
House Minority Leader Hakeem Jeffries, D-N.Y., talks with reporters during a midterm election night phone bank and watch party in Washington, D.C., on Tuesday, Nov. 3, 2026. (Tom Williams/CQ-Roll Call, Inc via Getty Images) · Tom Williams via Getty Images -
The AI sell-off saved Apple from a sell-off of its own
Yahoo Finance’s Hamza Shaban writes:
Despite an earnings beat and strong iPhone sales, investors focused on Apple’s (AAPL) weaknesses, slowing services growth, and projected lower margins as the stock fell 2% on Tuesday.
But the iPhone maker may have also been cushioned by its unique position among the tech giants — and the massive sell-off they had just a few trading days ago.
While everyone else has been spending lavishly on the AI build-out, Apple has been biding its time, as if content to let its competitors simply do their business on its hardware. To some, this is the “wrong” end of the AI trade.
But in the jittery moments of AI angst, when that lavish spending’s meaning shifts from “potential” to “risk,” it sends investors running from Google, Amazon, and Microsoft into the arms of Cupertino, safe from the risky AI bets.
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A Democrat won the Texas governor’s race after promising to halt new data center construction
Yahoo Finance’s Ben Werschkul reports:
A strong showing by Democrats in Texas swept Gina Hinojosa into office as the state’s first Democratic governor since 1990 in a contest closely watched by Big Tech companies.
The state is considered a bellwether for government restrictions on AI data centers.
Incumbent Gov. Greg Abbott conceded the race late Tuesday, calling Hinojosa and then telling his supporters, “mathematically we are not going to be able to win this election.” The Associated Press declared Hinojosa the winner at 11:17 p.m. ET.
Hinojosa, Texas’ first Latina governor, has pledged to impose a moratorium on data center construction in Texas, which accounts for more than 25% of planned US capacity by 2030.
Texas Democratic gubernatorial candidate Gina Hinojosa makes a final public appearance with supporters outside the Austin Recreation Center before polls closed on Election Day, Nov. 3, 2026, in Austin, Texas. (Chip Somodevilla/Getty Images) · Chip Somodevilla via Getty Images