The Dow Jones Industrial Average surged 3.0 percent on Wednesday, closing at 53,356, marking its best single-day performance in 18 months. The S&P 500 rose 1.6 percent to 7,689, and the Nasdaq gained 1.4 percent to 25,737. The Russell 2000 increased 1.6 percent to 2,857.
The rally coincided with Democrats clinching control of Congress. Investors appear to have priced in a shift toward diplomatic engagement in the Middle East, evidenced by a sharp decline in crude oil prices and a fall in bond yields—both signals of reduced geopolitical risk premium and unwinding safe-haven demand.
The broad sector advance reflected this risk-off reversal. Microsoft rose 6.7 percent, Amazon gained 6.1 percent, and Apple increased 5.3 percent. Alphabet climbed 3.2 percent, while Meta advanced 1.4 percent.
