The S&P 500 Index ($SPX) (SPY) closed up +1.58% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +3.03%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.91%. December E-mini S&P futures (ESZ26) rose +1.60%, and December E-mini Nasdaq futures (NQZ26) rose +1.08%.
US stocks settled sharply higher on Wednesday, with the Dow Jones Industrials posting a 2-month high. The Democratic sweep of Congress in the US midterm elections has erased market uncertainty and bolstered speculation that Democratic control of Congress will curb further fiscal expansion, easing concerns about government borrowing and burgeoning deficits. Stock index futures initially fell sharply in overnight trading due to concerns about regulatory scrutiny, as a Democratic majority in Congress could dampen enthusiasm for the AI infrastructure buildout.
