5 Reasons Why the US Stock Market Is Up After Midterm Election Results

US stocks rallied on the Wednesday after the November 3 midterm elections, when Democrats won control of both the House and Senate. The S&P 500 climbed 1.2% in early trading, the Nasdaq gained 1.1%, and the Dow rose more than 1,100 points, or 2.3%. Solar shares led the gains, with First Solar up 15.1% and Enphase Energy up 12.1%. The rally followed an overnight drop in Nasdaq-100 futures of as much as 2.4% that reversed after President Donald Trump accepted the results. Investors focused on divided government: Democrats control Congress while Trump retains veto power, making major tax and spending changes harder, and the 10-year Treasury yield slipped to about 4.92%.