US stocks rallied sharply on Wednesday, November 4, with investors welcoming greater political clarity following the midterm elections. Meanwhile, oil prices declined, and Treasury yields moved lower.
The S&P 500 rose 1.58 per cent to close at 7,688.62, while the Nasdaq Composite gained 1.44 per cent to 25,736.51. The Dow Jones Industrial Average jumped 3.03 per cent to 53,356.12.
The rally added approximately USD 1.2 trillion to the market capitalisation of US stocks on the first trading day following the midterm elections.
Why did the market rise on Wednesday?
Political clarity boosts sentiment
Market sentiment improved after Democrats won control of Congress, with investors expecting a divided government to limit major new policy or regulatory changes.
Democrats swept the 2026 midterm elections, taking control of Congress and creating a divided government. The outcome eased policy uncertainty and helped fuel the stock market rally.
The reduced political uncertainty encouraged buying activity across US equities.
Oil prices, Treasury yields and dollar support equities
Oil prices fell as traders interpreted comments from President Trump and Vice President Vance as signalling a possible US exit from the Middle East conflict.
Lower fuel costs were seen as supportive of consumer spending and as easing inflationary pressures, according to the source text.
Equities also received support from declining Treasury yields and a weaker US dollar. Lower yields and a softer dollar made stocks more attractive, particularly in rate-sensitive sectors.
Broad-based market rally
The gains were not limited to technology stocks. Money rotated out of some AI and chip-related names and into homebuilders, healthcare, consumer, industrial and travel stocks, resulting in a broader market advance.
US Markets Today: Top gainers and losers
Among the top gainers across major US indexes, 3M surged 9.55 per cent to close at USD 193.95.
Microsoft advanced 6.68 per cent to USD 555.80, while Sherwin-Williams gained 6.64 per cent to USD 363.50. McDonald’s rose 6.5 per cent to USD 280.22, while W.W. Grainger climbed 6.5 per cent to USD 1,489.39.
Among other major gainers, Amazon added 6.12 per cent to USD 266.03, Apple gained 5.31 per cent to USD 349.51, and Uber rose 4.9 per cent to USD 69.87.
| Stock | Index | Gain | Closing Price |
|---|---|---|---|
| 3M | Dow | +9.55% | $193.95 |
| Microsoft | Dow / Nasdaq-100 | +6.68% | $555.80 |
| Sherwin-Williams | Dow | +6.64% | $363.50 |
| McDonald’s | Dow | +6.5% | $280.22 |
| W.W. Grainger | S&P 500 | +6.5% | $1,489.39 |
| Amazon | Nasdaq-100 / S&P 500 | +6.12% | $266.03 |
| Home Depot | Dow | +6%+ | — |
| Apple | Dow / Nasdaq-100 | +5.31% | $349.51 |
| Uber | S&P 500 | +4.9% | $69.87 |
Bottom line
The November 4 rally added approximately USD 1.2 trillion to the market capitalisation of US stocks as investors responded to the midterm election outcome, declining oil prices, lower Treasury yields and a weaker dollar.
Gains were broad-based across sectors, with industrial, consumer, healthcare and travel stocks, along with several large-cap technology companies, advancing.