US markets rise as Democrats sweep midterm elections

US markets are trending upwards after Democrats swept the midterm elections, taking control of both the House and Senate on Tuesday.

The Nasdaq opened on Wednesday up 1 percent, the Dow Jones Industrial Average up 1.8 percent and the S&P 500 up 1.1 percent as markets opened at 9:30am ET (14:30GMT).

Retailers that rely on imports, such as Walmart and Target, are up 1.3 percent and 3.3 percent, respectively, amid possible changes in tariff policy.

Health insurance provider UnitedHealthcare is down 2.9 percent, while CVS Health is down 12 percent. However, Cigna went up 1.6 percent.

Investor sentiment was also buoyed by United States President Donald Trump’s social media post saying he would accept the results, easing political uncertainty and pressure on markets.

For companies involved in the artificial intelligence (AI) buildout, the outlook is different as the Democrats have been more critical of the sector.

Oracle and Nvidia both opened the day lower, although Alphabet, Google’s parent company, is on the upswing, up 3.5 percent at the opening bell.

“There is no way to sugarcoat that Democrats taking control, especially over the Senate, will create some major hurdles for AI and tech legislation in the Beltway over the next two years,” Dan Ives, managing partner of Yorkville Ives, said in a note on Wednesday.

“We estimate 10% of datacenters will not happen now,” Ives added in a post on X.

Democrats performed well in states where the AI buildout is pronounced, including Ohio, where Sherrod Brown flipped the Senate seat; Texas, where Democrats took a Senate seat with James Talarico; and the governor’s race, which Gina Hinojosa won, also flipping the seat.

Oil prices are also on the decline. The global benchmark Brent crude oil futures are down $3.20, or 3.09 percent, to $100.40 a barrel, while West Texas Intermediate crude is down $3.01, or 3.13 percent, to $93.08.

While oil prices are reacting to the midterm results, investors are also watching to see whether the war with Iran and the one between Russia and Ukraine will end amid reports of talks, following the previous session, which saw oil prices hit their lowest levels in four weeks.