Markets are rallying today after the midterm elections, with the Dow up more than 1,000 points, the S&P 500 up more than 112 points, and the Nasdaq up 524 points.
Republicans took a drubbing in yesterday’s elections, losing control of both the House and the Senate. Several states previously viewed as vanguard red Republican fell to the Democrats as the electorate rebuked President Donald Trump and his management of the country.
Conventional wisdom is that markets prefer a split government. With Republicans controlling the White House for the next two years and Democrats controlling Congress, crazy legislation is unlikely to pass. Effectively, new laws will be in stasis.
Amazon shares jumped almost 8% this morning. Apple was close behind, rising by nearly 7%. Both firms recently reported solid Q3 earnings, only to see their share prices crater in response. Fintech Block shares were up a whopping 14%+. Other popular shares joined the post-election rally.
Meanwhile, not all sectors were feeling the love. FIS, a banking software provider, plunged by over 22%.
Defense stocks were also moribund, perhaps reflecting the sentiment that the Trump administration’s more pugilistic tendencies would be curtailed.
Texas-based SpaceX, Elon Musk’s space, internet and AI venture, was solidly in reverse after Republicans lost both a Senate seat and the governorship in the Lone Star state. The always-convivial Musk said his election-interfering space lasers didn’t work this time, and data centers in space look pretty appealing right now.
https://t.co/lh3oMYmp8f
— Elon Musk (@elonmusk) November 4, 2026
