Dow Soars 1,569 Points in Best Day Since April 2025 as Wall Street Cheers Divided Government

The Dow Jones Industrial Average rocketed 1,569 points Wednesday, a day after Democrats won control of both chambers of Congress.

The blue-chip index closed up 3.03% at 53,356.12, its best day since April 9, 2025, when President Donald Trump paused his sweeping tariffs, CNBC reported. It was the Dow’s first finish above 53,000 since Sept. 8.

The S&P 500 rose 1.58% to 7,688.62, and the Nasdaq Composite gained 1.44% to 25,736.51. Morning futures had pointed to a far smaller gain after an overnight selloff.

The rally was the market’s biggest single-day gain of the year, CBS News reported. Walmart rose 3%, Bank of America added 4%, and Microsoft and Amazon each climbed about 6%, according to ABC News.

Investors appeared to welcome a split government. “Markets like gridlock,” Morgan Stanley Wealth Management’s Andrew Slimmon told CNBC.

Trump also helped calm nerves. He told The New York Times he was “absolutely willing” to accept the results and told The Wall Street Journal he would work with Democrats in the new Congress.

“He is an X factor,” said Jay Woods, chief market strategist at Freedom Capital Markets, in comments to CNBC. Philip Blancato of Osaic said the S&P 500 could reach 8,000 by year’s end.

Deutsche Bank strategist Jim Reid called Tuesday’s vote a “perfectly normal election” for markets in a note quoted by ABC, pointing to the long record of midterm-year rallies.

Edward Jones found the S&P 500 has averaged a 15.5% gain in the six months after the last 14 midterm elections, CBS reported.

Trump Media, AI Names Lag

Not every stock joined in. Trump Media & Technology Group, parent of Truth Social, fell nearly 25%, The Washington Post reported. Tesla dropped 3.3% and SpaceX slid 3.8%.

Nvidia fell about 3%, and data center operator CoreWeave also traded lower. Democrats picked up seats in states where opposition to the rapid buildout of AI data centers has been growing.

In Texas, a key data center hub, Democratic governor-elect Gina Hinojosa defeated Gov. Greg Abbott after pledging an immediate moratorium on data centers, adding to the sector’s losses, CNBC reported.

“There is no way to sugarcoat that Democrats taking control, especially over the Senate, will create some major hurdles for AI and tech legislation,” Dan Ives of Yorkville said, according to ABC.

Trump touted the gains on Truth Social shortly after noon. “Stock Market just hit another Record High,” he wrote, adding, “Your 401(k)s are through the roof.”

The Dow’s close was not an all-time high, and Just the News noted it was unclear which record the president was referring to.

Investors will next turn to corporate earnings and economic data as Washington prepares for a new Congress in January, when Democrats will hold the gavels in both the House and Senate.

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