Dow rallies 1,500 points after decisive Democratic midterm victory, drop in oil prices

Stocks ripped higher on Wednesday as a decisive victory by Democrats in the U.S. midterm elections — and President Donald Trump’s acceptance of the results — removed political uncertainty risk hanging over Wall Street.

Democrats won majorities in both the House of Representatives and Senate, and scored victories in key gubernatorial races like Texas. The Democrats will now be a check on the policies of Trump, who’s enacted business-friendly tax cuts, while also pursuing tariffs and a war in Iran that’s boosted inflation.

The Dow Jones Industrial Average traded 1,514 points, or 2.9%, higher. The 30-stock index moved back above 53,000 for the first time since Sept. 8. The S&P 500 gained 1.7%, while the Nasdaq Composite jumped 1.9%.

Stocks extended their gains after U.S. crude oil fell more than 8% as Vice President JD Vance blamed the Iran war for the election losses the Republican party suffered Tuesday. Brent futures traded more than 8% lower.