By William Collins, consultant in stock markets – Eurasia Business News, November 4, 2026. Article no 3243
U.S. stocks surged on Wednesday, November 4, as investors welcomed Democratic control of Congress, falling Treasury yields and a sharp retreat in oil prices. The Dow Jones Industrial Average climbed more than 1,500 points during afternoon trading, while the S&P 500 and Nasdaq rallied as markets reassessed the outlook for government spending and the Iran war.
Brent crude dropped below $95 per barrel as comments from Vice President JD Vance reinforced expectations of renewed pressure for a peace agreement. Gold moved back above $4,000 an ounce, benefiting from a weaker dollar and lower yields. These were intraday developments: the regular U.S. stock session had not yet closed at the time of writing.
Dow, S&P 500 and Nasdaq Rally After Midterm Elections
At 1:11 p.m. Eastern Time, the Dow was up 1,501 points, or 2.9%, while the Nasdaq Composite gained 2.1%, according to Associated Press reporting. The supplied market update subsequently described the Dow rising more than 1,600 points, with the S&P 500 around 1.7% higher. Different percentages reflected different checkpoints rather than conflicting closing figures.
The rebound followed an unsettled overnight reaction as election results emerged. By Wednesday morning, futures had turned decisively higher: Dow futures gained approximately 1,100 points, while S&P 500 futures advanced 1.1%. Investors increasingly focused on the implications of divided government rather than the initial political surprise.
Democratic majorities in both chambers would constrain President Donald Trump’s legislative agenda. However, control of Congress does not mean control of the presidency, and it does not automatically translate into rapid policy changes.
Why Investors Are Welcoming Divided Government
The market’s immediate interpretation centred on gridlock. A Democratic Congress and Republican president could make major spending packages harder to enact, potentially limiting additional borrowing and reducing some fiscal uncertainty. Kitco’s election coverage identified expectations of more restrained federal spending as one factor behind declining Treasury yields.
That reasoning has limits. Congressional negotiations can still produce spending agreements, while disputes over budgets and government funding can create uncertainty of their own. Likewise, a divided Washington does not guarantee stable regulation: executive agencies and congressional oversight remain important even when major legislation faces obstacles.
The supplied update suggested limited near-term movement on comprehensive AI legislation because Democrats could struggle to overcome a presidential veto. That is a plausible policy scenario, not an assurance that AI companies will face no additional scrutiny.
Brent and WTI Oil Prices Plunge on Iran Peace Hopes
Oil delivered one of the day’s largest moves. AP reported Brent crude falling 8.8% to $94.51 per barrel during afternoon trading. A separate market report placed WTI at $88.57, down $7.52. These quotations were not verified settlement prices.
The decline accelerated after Vance attributed Republican electoral losses to the Iran war. Traders interpreted the comments as increasing political pressure for a diplomatic resolution, although no completed peace agreement had been announced.
Trump also acknowledged that Iran was partly responsible for Republican losses, telling The Wall Street Journal that “Iran was a piece of it.” His remarks supported the view that the conflict had become a significant domestic political issue, without establishing what negotiating concessions would follow.
Lower crude prices can ease inflation pressure and reduce costs for fuel-intensive businesses. The market reaction therefore extended beyond energy trading into expectations for household spending, corporate margins and monetary policy.
Energy Stocks Fall While Other Sectors Advance
The oil retreat produced clear sector differences. ExxonMobil fell 5.3% and ConocoPhillips dropped 5.9% at AP’s afternoon checkpoint, reversing part of the gains energy producers had enjoyed during the conflict.
Renewable-energy companies advanced as investors assessed the political shift. First Solar gained 6.4% and Enphase Energy rose 6.2% in the same report. Their gains reflected changing expectations, not confirmation that Congress had already enacted new support measures.
The supplied snapshot identified consumer discretionary, communication services and consumer staples among the stronger sectors. It also reported declines in Tesla and SpaceX. Those individual moves should not be attributed exclusively to election results without examining company-specific developments.
Treasury Yields and Dollar Decline
The supplied bond-market snapshot showed the 10-year Treasury yield falling seven basis points to 4.90%, the two-year yield declining five basis points to 4.59%, and the 30-year yield slipping three basis points to 5.30%. The dollar index fell approximately 0.3%.
Lower yields provided support for interest-sensitive assets, while a softer dollar helped precious metals. Kitco linked the simultaneous bullion rally to expectations of legislative gridlock and potentially more restrained spending. Neither move established that the Federal Reserve had changed its policy outlook.
Gold Price Today: Kitco Reports Bullion Above $4,000
Gold prices rallied on Wednesday, November 4, with Kitco quoting spot gold at $4,058.90 per troy ounce, up $129.90, or 3.31%, at 15:45 on its displayed clock. Bullion traded within a daily range of $3,919.00–$4,071.40, with the market still open.
Read also : Gold : Build Your Wealth and Freedom
Economic Data Keep the Fed in Focus
Economic releases offered a mixed backdrop. October’s ISM Services index eased to 54.5 from 54.9, below the 54.7 consensus. New-order growth slowed, although the employment component improved.
ADP reported 86,000 additional private-sector jobs, beating expectations of 70,000 but below September’s 90,000. Separately, September’s goods-and-services trade deficit narrowed to $105 billion, compared with the $107.9 billion expected.
The combination left investors balancing political relief against continuing economic resilience. Wednesday’s rally reflected changing expectations about fiscal policy and the Iran conflict—not a guarantee of lower interest rates or an uninterrupted stock-market advance.
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© Copyright 2026 – Eurasia Business News. Article no. 3243