Stocks soared Wednesday as investors reacted to a clean sweep by Democrats in the midterm election.
Stocks were initially down when results started to roll in Tuesday night, in part due to fears of a data center crackdown, but futures turned green later in the evening, and all three major indexes soared on Wednesday.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
It wasn't immediately clear why stocks jumped on the results, though it appeared to be a combination of several factors. Investors were glad to see pushback on the Trump administration validated, including on inflation and the war in Iran. Investors tend to like a divided government, and with Democrats gaining solid control of both houses of Congress, they clearly have that. Finally, President Trump was surprisingly conciliatory, saying he would "absolutely accept the results of the election," and was willing to work with Democrats, which could pave the way to a productive Congressional term.
Among the winning sectors today was housing, which has languished over the last two years due to high mortgage rates and weak housing turnover. The State Street SPDR S&P Homebuilders ETF (NYSEMKT:XHB) closed up 5.4%, reaching its highest point in more than two months, while Home Depot (NYSE:HD) and Lowe's (NYSE:LOW), the two leading home improvement retailers, were up as well. Home Depot finished up 6.5%, and Lowe's jumped 7.5%.
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Stocks were initially down when results started to roll in Tuesday night, in part due to fears of a data center crackdown, but futures turned green later in the evening, and all three major indexes soared on Wednesday.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
It wasn't immediately clear why stocks jumped on the results, though it appeared to be a combination of several factors. Investors were glad to see pushback on the Trump administration validated, including on inflation and the war in Iran. Investors tend to like a divided government, and with Democrats gaining solid control of both houses of Congress, they clearly have that. Finally, President Trump was surprisingly conciliatory, saying he would "absolutely accept the results of the election," and was willing to work with Democrats, which could pave the way to a productive Congressional term.
Among the winning sectors today was housing, which has languished over the last two years due to high mortgage rates and weak housing turnover. The State Street SPDR S&P Homebuilders ETF (NYSEMKT:XHB) closed up 5.4%, reaching its highest point in more than two months, while Home Depot (NYSE:HD) and Lowe's (NYSE:LOW), the two leading home improvement retailers, were up as well. Home Depot finished up 6.5%, and Lowe's jumped 7.5%.
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