Stocks Rally and Oil Falls After Democrats Win Congress

Stocks rise after the vote

November 4, 2026 · 3:30 p.m. Central

U.S. stocks rallied Wednesday and oil prices fell as investors assessed the implications of Democrats winning control of Congress in the midterm elections.

The Associated Press reported that the Dow Jones Industrial Average gained about 3%, while the S&P 500 and the Nasdaq composite also rose. Those figures describe Wednesday’s session; the election outcome is one of several forces affecting markets.

In the morning, Reuters reported that stocks opened higher as investors weighed the prospect that divided control of Washington could make major policy changes harder to pass.

Not every stock moved together

Shares of hospital operators and some retailers gained, while defense contractors and some artificial-intelligence-related stocks fell, AP reported. Nvidia and other chip or data-center companies had already faced questions about high valuations and spending before the election.

Brent crude oil also dropped below $95 a barrel in AP’s report. Market expectations about the war in Iran were among the factors discussed by analysts; an election result does not settle the conflict or guarantee future energy prices.

Shares of Trump Media and Tesla also declined, AP reported. Individual stock movements can reflect business developments and investor expectations as well as political news.

What divided government may mean

Democrats are projected to take majorities in both the House and Senate, while President Donald Trump remains in the White House. Congress can shape legislation, spending and oversight, but the president retains substantial powers in areas including foreign policy and trade.

Some investors expect divided government to slow sweeping policy changes. That is a market interpretation, not a promise of a particular outcome. AP also noted that company earnings and interest rates are important longer-term drivers of stock prices.

One day’s moves do not predict what will happen next. Political negotiations, corporate results, inflation and global events can all change the outlook.

Market timeline

1. November 3 — Americans vote in the midterms; stocks finish mixed before the full results are known.
2. November 4 — Reuters reports a higher U.S. market open as investors assess the congressional results.
3. November 4 — AP reports a broad rally and a fall in oil prices during Wednesday’s session.

Sources and visual credits

Associated Press: markets and sector moves · Reuters: market open · Charles Schwab: morning market analysis.

Visual: conceptual market and oil illustration; chart shapes are decorative and do not represent a specific price history.