US stock market stages big rally today: Why is Dow Jones surging? Dow jumps 1,100 points as S&P 500 and Nasdaq turn green, with healthcare stocks at the centre

US stock market today: Dow Jones leads a 1,143-point rally, S&P 500 and Nasdaq rise - Wall Street opened higher on Wednesday, November 4, after Democrats won control of both the US House of Representatives and the Senate in the midterm elections. Investors appeared to welcome the prospect of a divided government, with the election result raising expectations that some of President Donald Trump's policies could face greater resistance in Congress.

The Dow Jones Industrial Average climbed 1,143.06 points, or 2.21%, to 52,929.78. The S&P 500 gained 124.46 points, or 1.64%, to 7,693.38. The Nasdaq Composite advanced 526.47 points, or 2.08%, to 25,898.48, according to market data last updated at 9:50 a.m. ET.

Why is the US stock market rallying today? Dow, S&P 500 and Nasdaq turn green

The election result changed expectations about the policy environment in Washington. With Democrats controlling both chambers, the Trump administration could face greater difficulty passing parts of its economic agenda.


Investors are particularly watching possible changes involving healthcare, tariffs, housing and energy policy. A divided government could also limit the chances of major policy changes being pushed through Congress without opposition.

However, Wednesday's rally does not necessarily mean investors expect stronger economic growth. Markets often react to the possibility of changes in government policy, even when the longer-term economic impact remains uncertain.

Historical trends also suggest that midterm elections can influence markets in the short term without necessarily changing their longer-term direction.

Amazon, Walmart and Bank of America lead gains

Several companies outside the technology sector benefited from Wednesday's buying.

Amazon shares rose 6.97% to $268.17, while Walmart gained 1.3%. Bank of America advanced 2.6% as investors looked beyond technology stocks for opportunities.

Healthcare companies also attracted strong interest. Molina Healthcare and Centene each gained around 6%, while HCA Healthcare shares climbed 7%.

The gains followed expectations that a Democratic-controlled Congress could influence healthcare policy and increase scrutiny of some Trump administration decisions.

Solar stocks were among the biggest beneficiaries. The Invesco Solar ETF jumped 9%, suggesting investors were betting that renewable energy companies could face a more favourable policy environment.

Nvidia and other chip stocks struggle despite the broader rally

Nvidia shares fell 1.73% to $203.11, while semiconductor stocks such as Micron also came under pressure. Intel declined 3.20% to $58.62.

AMD shares also slipped slightly despite reporting better-than-expected third-quarter earnings. The company had reported strong growth in data centre revenue, but the results were not enough to support its shares during the session.

One concern for chip and data centre companies is the possibility of tighter restrictions on new data centre construction.

Investors are watching whether newly elected officials and local ballot measures could make it harder to build large computing facilities. Such restrictions could affect companies investing heavily in artificial intelligence infrastructure.

The issue is particularly important in Texas, which accounts for a significant share of planned US data centre capacity.

SpaceX falls while Amazon and Riot Platforms gain

SpaceX-linked shares were also under pressure. The stock fell 4.92% to $134.35, according to the supplied market data.

Elsewhere, Riot Platforms gained 9.56% to $15.36, while Cipher Digital fell 15.80% to $6.84.

Amazon was among the strongest actively traded large companies, rising nearly 7%. Super Micro Computer added 2.52%, while TeraWulf slipped 1.04%.

These movements show that Wednesday's rally was not uniform. Investors were adjusting their positions based on how individual businesses could be affected by potential policy changes.

Gold rises 2.81% as oil prices also move higher

The rally in US equities came alongside gains in several commodity markets.

Gold futures rose 2.81% to $4,038.20, while Brent crude oil climbed 3% to $100.49 a barrel. Copper gained 0.32% to $1,361.

In currency markets, the euro advanced 0.57% against the US dollar to 1.1258. The British pound gained 0.53% to 1.3486.

US government bond yields also remained an important part of the market picture. The 10-year Treasury yield stood at 4.913%, down 0.037 percentage points.

Wednesday's calendar includes economic activity readings from S&P Global and the Institute for Supply Management. ADP's private-sector employment report will also provide information about hiring conditions.

Corporate earnings remain another major focus. Reports from Arm Holdings, McDonald's, Qualcomm, Novo Nordisk and Uber are expected to offer fresh information about technology spending, consumer demand and business conditions.