Democrats Win Congress: Dow Surges 3%, Oil Drops 8%, Gold Climbs Back Above $4,000

Democrats won control of both the House and the Senate in Tuesday's US midterm elections, and Wall Street rallied on Wednesday. The Dow jumped about 3%, oil fell about 8%, the dollar and Treasury yields slipped, and gold climbed back above $4,000.

Below, we cover the results, how Trump and Vance responded, how markets reacted and what to watch next.

Democrats Take the House and the Senate

CBS News projects that Democrats won sweeping victories on Tuesday and will take control of both chambers of Congress next year, as voters repudiated President Donald Trump and Republican control in Washington. CBS estimates Democrats will hold between 251 and 268 House seats once all votes are counted, and at least 54 Senate seats, with two races, Alaska and Mississippi, still uncalled for. The Mississippi margin is only dozens of votes.

Republicans entered election night with a 53-seat Senate majority and a 218-214 edge in the House, according to CBS. NBC News projections show Democrats flipped seven Republican-held Senate seats: Kansas, Iowa, Texas, Ohio, Maine, North Carolina and South Carolina. CNBC reported that Democrats also flipped about two dozen House districts, five governorships and as many as 12 state legislative chambers, with votes still being counted. The result ends unified Republican control of Washington.

Trump and Republicans Respond

In his first public comments on the results, Vice President JD Vance wrote that "the reason we lost is the war," according to CBS News. Trump agreed the Iran war contributed to the losses, pointing to higher gas prices, but said he had to launch it and would do it again. Trump also said he would accept the results.
Iran's chief negotiator said on Wednesday that the results show Americans have rejected the war, CBS reported.

Dow Surges 3% for Its Biggest Gain of the Year

The Dow Jones Industrial Average gained 1,569 points, or 3.03%, to close at 53,356.12 on Wednesday, its biggest gain of the year, according to CBS News. CNBC noted it was the Dow's best day since April 2025 and its first close above 53,000 since 8 September. Analysts told CBS that political gridlock would limit Congress's ability to pass major tax and spending packages.

The rally reversed overnight weakness. Stock futures had initially fallen as results came in, then turned higher. At the close, the S&P 500 had gained 1.58% to 7,688.62 and the Nasdaq 1.44% to 25,736.51, according to CNBC. Some investors had worried that Republicans might challenge the results, and Trump told the New York Times he was "absolutely willing" to accept them, CNBC reported.

Oil Falls More Than 8%

Oil was the biggest mover. West Texas Intermediate settled at $88.12, down more than 8%, and Brent fell to around $94.60, its lowest since 4 September and below $100 for the first time since 7 October. The drop came as Vance blamed the Republican defeats on the Iran war.

On Tuesday, Brent had settled at $103.60, and it finished October at a six-month high.

Gold Climbs Back Above $4,000

Gold climbed back above $4,000 on Wednesday after dropping below that level on Tuesday. Treasury yields and the dollar fell on the same day. Gold had fallen from around $4,150 to $4,087 after the September CPI report.

Dollar and Treasury Yields Slip

The dollar index fell about 0.3% to around 101.5, and the 10-year Treasury yield fell about 6 basis points to 4.89%.

Fed and Inflation Backdrop

The Fed held rates at 3.75% to 4% on 28 October, with two officials voting for a hike. September CPI rose 3.7%, driven by a 9.1% jump in gasoline. The next Fed decision is on 9 December, and the US jobs report is due on Friday 6 November.

Market Snapshot at the Close

• Dow Jones: 53,356.12, up 3.03%
• S&P 500: 7,688.62, up 1.58%
• Nasdaq Composite: 25,736.51, up 1.44%
• WTI crude: $88.12, down more than 8%
• Brent crude: around $94.60
• US 10-year Treasury yield: 4.89%
• Dollar index: around 101.5, down about 0.3%

What to Watch Next

• Remaining races: The Alaska and Mississippi Senate races are still uncalled, and dozens of House races are still being counted.
• US-Iran talks and Hormuz: Any new strikes, shipping attacks or progress in talks.
• The US jobs report on Friday 6 November.
• The Fed decision on 9 December.
• The new Congress: Democrats take control of both chambers next year.

Because markets can move sharply on political and geopolitical headlines, many traders plan position sizes and exit levels before major events.

The Bottom Line

Democrats won control of Congress, and markets reacted sharply on Wednesday. The Dow gained 3%, oil fell more than 8%, the dollar and Treasury yields slipped, and gold moved back above $4,000.
Friday's jobs report, the Fed's 9 December decision and the remaining races are the next events on the calendar.

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