Nauman Khan
1 min read
This article first appeared on GuruFocus.
A broad shift in U.S. stocks followed the midterm elections Wednesday, with investors buying shares across several industries as the new balance of power in Washington came into focus.
The Dow Jones Industrial Average advanced 1,200 points, or 2.3%, in Wednesday trading. The S&P 500 rose 1.8%, while the Nasdaq Composite added 2%.
Democrats secured control of the House and Senate, setting up a divided government that could make major policy changes harder to push through. President Donald Trump’s willingness to accept the results helped calm concerns about a possible political confrontation.
The move was not limited to large-cap technology stocks. Bank of America gained 2.6% and Walmart rose 1.3%, while Molina Healthcare climbed 6% and HCA Healthcare added 7%. The Invesco Solar ETF advanced 9% as renewable energy shares responded to expectations of a different policy environment.
Some parts of the market moved in the opposite direction. CoreWeave and other data center-related companies faced pressure amid concerns that a new political leadership in Texas could create obstacles for infrastructure projects. West Texas Intermediate crude also declined about 3%, offering some relief on the inflation front.
