Dow closes up 1,569 points after Democrats win Congress

U.S. stocks rallied on Wednesday, November 4, after Democrats won control of both chambers of Congress, with the Dow Jones Industrial Average closing up 1,569.40 points, or 3.03%, at 53,356.12. The S&P 500 gained 1.58% and the Nasdaq Composite rose 1.44%, according to closing figures reported for the session. The gains followed earlier reports of smaller increases while trading was still underway. Investors were weighing the prospect of a Democratic-controlled Congress and a Republican White House, a divided government that analysts said could limit sweeping policy changes. The full-session figures put the Dow’s gain above 1,500 points. Market strategists said divided control can reduce the likelihood of major changes to taxes, spending and regulation. Andrew Slimmon, a portfolio manager at Morgan Stanley Investment Management, said markets favor gridlock over one party holding too much power. Other analysts cautioned that the election’s influence on markets may fade compared with corporate earnings and interest rates. Brian Jacobsen, chief economic strategist at Annex Wealth Management, said company profits matter more than election outcomes over time. The political outlook...