Dow Jones Today: Dow Soars 1,569 Points, Its Best Day of 2026, After Democrats Win Congress

The Dow Jones Industrial Average posted its biggest gain of the year on Wednesday, Nov. 4, closing up 1,569.40 points, or 3%, at 53,356.12, as Wall Street rallied the day after Democrats won control of both the House and the Senate in the midterm elections.

The broader market followed. The S&P 500 gained 119.7 points, or 1.6%, to finish at 7,688.62, and the tech-heavy Nasdaq Composite added 364.50 points, or 1.4%, to 25,736.51, according to closing figures reported by Reuters.

This article is for information only and is not financial advice.

How the Dow closed today

The big early move in futures carried through to the closing bell. CBS News described the session as the Dow’s largest one-day gain of 2026, with investors treating the end of the election as the removal of a major source of uncertainty.

“Investors are happy to have the midterms out of the way,” Adam Crisafulli, head of Vital Knowledge, wrote in a note quoted by CBS News. “This was a major source of uncertainty, and putting it in the rear-view mirror removes a key obstacle heading into a very favorable time of year seasonally.”

Here are the closing numbers for Nov. 4:

Why stocks rallied after the election

Analysts pointed to a few reasons for the rally:

• Less uncertainty. “Stocks are sharply higher today as election clarity reduces uncertainty,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told Reuters.
• Gridlock. With Democrats running Congress and President Donald Trump holding veto power, many analysts expect fewer sweeping tax and spending changes. Wall Street has historically viewed that kind of split government as a positive because it limits policy surprises, CBS News reported.
• Lower oil prices. Reuters reported a sharp drop in oil, driven by bets that the change in power could speed up the end of the Iran war, which lifted sentiment across the broad market.

Not everyone expects big policy changes. “The magnitude of the gains for the Democrats in the midterms does not change too much for the near-term policy outlook, given the party still lacks a filibuster-proof majority in the Senate and President Trump has veto power to block legislation,” Stephen Brown of Capital Economics wrote, according to CBS News.

Winners and losers in the stock market today

The gains were broad but not universal. All but two S&P 500 sectors rose, with consumer discretionary up 4.3% and energy down 4.8%, according to Reuters.

Gainers: - Solar and clean energy stocks rose on bets that federal support for clean energy will stay in place. The Invesco Solar ETF climbed nearly 6%. - CBS News said dollar stores and hospital owners also helped lead the market higher. - AMD rose 1% after forecasting faster-than-expected growth for 2027.

Decliners: - Trump Media & Technology fell nearly 25%, CBS News reported. - Elon Musk’s SpaceX and Tesla fell about 3.8% to 3.9% and 3.3%, respectively. Musk spent heavily backing Republican candidates this cycle. - Defense stocks including Northrop Grumman, RTX and Lockheed Martin slipped, since Trump’s $1.5 trillion defense budget request could face a tougher path in Congress. - Data center operators slumped: Hut 8 fell 23%, IREN 11%, Core Scientific 10% and Applied Digital 6.7%. The Philadelphia Semiconductor index dropped 3.1% to a six-month low.

What the election means for AI and data center stocks

The split inside tech was one of the day’s biggest stories. Democrats made gains in key data center states, including Texas and Georgia, where public opposition to the industry’s rapid growth has been building. Investors bid up cash-rich AI giants while selling chipmakers and smaller companies that depend on a fast buildout, Reuters reported.

“It’s pretty clear that the AI trade will face some headwinds there,” said Scott Chronert, head of U.S. equity strategy at Citi Research.

Jeff Buchbinder of LPL Research noted that data center decisions are made largely at the state and utility-commission level, which makes governor’s races, including Gov. Greg Abbott’s loss in Texas, important for the sector. LPL still expects the buildout to happen but said it could slow, CBS News reported.

Do stocks usually rise after midterm elections?

History has been kind to markets after midterms. The S&P 500 has risen an average of 15.5% in the six months following the last 14 midterm elections going back to 1970, according to Edward Jones figures cited by CBS News. Past performance does not guarantee future results, and analysts at the Wells Fargo Investment Institute said economic growth, inflation, interest rates and earnings have historically mattered more than which party controls Congress.

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