Closing Bell: Stocks Rally After Midterm Congressional Sweep

U.S. stocks jumped Wednesday as investors absorbed a victory by Democrats in the U.S. midterm elections and a steep drop in oil prices. 

The S&P 500 (SPX) rose 1.58% and The Dow Jones Industrial Average ($DJI) climbed by 3.03%. The small cap Russell 2000 (RUT) rose 1.58%. The Nasdaq-100 (NDX) rose 0.91%, but the PHLX Semiconductor Index (SOX) was down 3.13%. 

WTI, the U.S. oil price benchmark, slumped nearly 8% and was near $88.50 per barrel in late afternoon trading. 

Four things to watch after Wednesday’s market action: 

Midterm Election Results Drive Sector Rotation 

The midterm election sweep by Democrats, who will take control of Congress, had impacts across sectors as investors reassessed AI spending, infrastructure returns, and the potential for tighter regulation and for data center permitting restrictions. 

Clean energy shares rose including First Solar (FSLR), Sunrun (RUN) and Enphase Energy (ENPH).  

Apple (AAPL) shares rose 5.4% to settle at a record high with the potential for slowing data center construction and easing pressure on memory chip prices. Conversely, AI and data center stocks came under pressure, with Intel (INTC) down nearly 4%, Nvidia (NVDA) down nearly 3%, CoreWeave (CRWV) slumping more than 9%, Super Micro Computer (SMCI) down more than 5%, and IREN (IREN) down roughly 10%. See Why Midterm Results Curbed Volatility & Impacts to AI Buildout, Crypto Regulation and Will Post-Election Relief or Energy Worries Carry Markets to 2027? 

CVS Health (CVS) Announces Retail Pharmacy Breakup 

CVS Health shares fell more than 12% Wednesday after it said it intends to separate into two publicly traded companies in the first half of 2028, with the retail pharmacy and MinuteClinic operations becoming CVS Pharmacy. The announcement overshadowed an earnings beat and increased guidance. See CVS Dismantling Healthcare Empire: Regulatory Tailwinds v. Cost Headwinds 

SpaceX (SPCX) selects Qualcomm (QCOM) for Starlink Mobile 

SpaceX selected Qualcomm to provide radio equipment, baseband technology and software for Starlink Mobile’s planned nationwide terrestrial 5G network. Deployment across tens of thousands of U.S. sites is expected to begin in 2027. SpaceX shares fell roughly 4% Wednesday. See Options Corner: QCOM Signs SPCX Deal as Earnings Loom | Morning Movers| Schwab Network 

Major Consumer and Technology Earnings in Focus 

McDonald’s (MCD) shares were up more than 6% after it reported adjusted earnings of $3.57 per share, above expectations, while revenue missed estimates and U.S. comparable sales declined 0.2%. Shares of Uber Technologies (UBER) were up more than 5% after it reported 10% revenue growth and a 20% increase in gross bookings. See Ca$htag$: MCD Loses Its Value Edge as Rivals Gain Ground | Fast Market

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