Dow Jones Industrial Average gains 1,569 points after midterms

The Dow Jones Industrial Average jumped 1,569 points, or 3 percent, on Wednesday, marking its largest single-day gain since late July. The S&P 500 rose 1.6 percent, its best performance in three months, while the Nasdaq composite climbed 1.4 percent. These gains followed the midterm elections in which Republicans lost control of both chambers of Congress.

Traders responded to the electoral shift by buying shares in sectors that may benefit from reduced political friction. Stocks of hospital owners and dollar store chains serving low-income consumers led the broad market rally. The market move suggests investors anticipate a less adversarial legislative environment compared to the previous two years of unified Republican control.

President Donald Trump reacted to the election results by inviting reporters to the construction site of the new White House ballroom. He spent nearly 20 minutes discussing specific building details and did not mention his party's losses in deep Republican strongholds like Texas and South Carolina. The event drew criticism from voters who cited a high cost of living and federal corruption as reasons for punishing the party in power.

Vice President JD Vance sought to distance himself from the administration's defense of the Iran conflict. In a social media post, Vance blamed the unpopular war for the Republican defeat. He wrote, "If you’d like to argue it was worth it, that losing the Senate for the next 6 years was worth it, then do so." Vance has previously stated he would decide after the election whether to run for president in 2028.

House Speaker Mike Johnson said he will not seek the Republican leadership position in the new Congress. According to two people familiar with the decision, Johnson will decline to become House minority leader. He will retain his seat in the House from Louisiana for a sixth term. Johnson had served as speaker during a period when the House Republican majority was among the slimmest in modern history.

In the Senate, Abdul El-Sayed won the race in Michigan, defeating Republican Mike Rogers. El-Sayed told The Associated Press that voters rejected a "hateful, spiteful campaign" that targeted his Muslim identity. He described feeling like he was "running on adrenaline and caffeine" after the race was called early Wednesday. His victory contributed to the Democratic majority in the upper chamber.

The election results have created a divided government, with Democrats poised to take over both the House and the Senate in January. This shift ends the period of unified Republican control and positions the new Congress to act as a coequal branch with the executive. Democrats in both chambers have expressed eagerness to address voter demands for change.

In a separate development in Tampa, Florida, two people died in a shooting at the Citibank business complex. The Hillsborough County Sheriff's Office reported that a suspect and one other person were dead. More than 360 deputies were deployed to the campus, which employs thousands of people in the area. It was not immediately known if others were injured.

New York Attorney General Letitia James announced that Jacqueline Kelly will lead the reopened criminal investigation into gang rape allegations at Cornell University. Kelly, a former Manhattan federal prosecutor, previously worked on cases involving Sean Combs and Peter Nygård. She will work with a team to gather evidence and interview witnesses regarding allegations from a September lawsuit concerning a fraternity party in October 2024.

In Israel, President Isaac Herzog accepted the certified results of last week's parliamentary elections. He began consultations with party representatives to form a new government. This move undermines Prime Minister Benjamin Netanyahu's claims that Arab-led parties stole the election. Herzog stated, "The elections are over. Now is the time to face reality."