Dow Soars 1,569 Points as Trump Touts 401(k)s After Midterms

The Dow Jones Industrial Average surged 1,569 points, or 3%, on Wednesday and had its best day since April 2025, according to CNN, as Wall Street rallied one day after Democrats won control of both the House and the Senate in the midterm elections.

President Donald Trump quickly pointed to the gains. “Stock Market just hit another Record High — 91 Days in just a short period of time — Less than two years. Your 401(k)s are through the roof. Record Setting All!” he wrote on Truth Social, according to Just The News. That outlet noted it was not immediately clear which record the president was referring to, and Mediaite also reported the post.

Today on Taking Stock | Dow leads gains as major indexes rally after Midterm Election results.@roundhill on post-midterm market trends + @CopperHQ with crypto regulation outlook + @CygnvsInc on AI cyber insurance!@jd_durkin has more. https://t.co/JWIS798x7Z

— NYSE 🏛 (@NYSE) November 4, 2026

The broader market climbed as well. CNN reported that the S&P 500 rose 1.58% and the Nasdaq Composite rose 1.44%. CNN, citing data from CFRA Research, reported that the Dow’s gain was its biggest single-day move after a midterm election since 1982, and that the S&P 500 posted its second-biggest post-midterm gain over the same stretch, trailing only its gain after the 2018 midterms.

ABC News reported that the Dow closed up 1,570 points, its best one-day performance since April 9, 2025, when Trump announced the suspension of a far-reaching set of reciprocal tariffs.

Gridlock and a return to normal

Analysts quoted by several outlets said investors welcomed the end of election uncertainty. CBS News reported that Wall Street analysts expect heightened gridlock in Congress, with Democrats controlling both chambers and Trump threatening to use his veto, and that gridlock has historically been good for markets because it limits sweeping tax and spending legislation.

CBS News also reported that Wells Fargo Investment Institute analysts said they “do not expect sweeping policy changes.” CBS cited Stephen Brown of Capital Economics, who said in a note to investors that Democrats still lack a filibuster-proof Senate majority and that the president has veto power to block legislation.

Deutsche Bank strategist Jim Reid called the outcome “a perfectly normal election by historical standards” in a memo to clients shared with ABC News. “Markets appear to have welcomed that normality, with an emerging relief rally as things stand,” Reid said, according to ABC News.

Oil falls, AI worries linger

Oil was a major factor. ABC News reported that oil prices plunged after Vice President JD Vance issued a statement on X blaming the Republican defeats on the Iran war, with West Texas Intermediate futures dropping more than 7% to about $88.60 a barrel.

Not everyone sees smooth sailing ahead. ABC News quoted Dan Ives of Yorkville, who said the Democratic wave “will have a negative impact on the pace of the AI Revolution buildout in the US over the next few years.” CBS News reported that the shifting political winds could affect issues from the pace of the data center buildout to cryptocurrency regulation and proposals to cap credit card interest rates.

Trump Media & Technology Group shares also fell. The Washington Post reported the stock dropped to an all-time low of about $5.10 in early trading Wednesday, and The Guardian reported that the company’s shares lost 11% overnight as election returns came in.

History may offer comfort to investors with 401(k)s. The S&P 500 rose an average of 15.5% in the six months after the last 14 midterm elections dating back to 1970, according to figures from Edward Jones cited by CBS News.

Sources

• CNN Business
• ABC News
• Just The News
• Mediaite
• CBS News
• The Washington Post
• The Guardian

Reporting by Daily Beltway.