Stocks have shown a strong move to the upside in morning trading on Wednesday, adding to the gains posted in the previous session. With the upward move, the Dow has reached its best intraday level in almost a month.
Currently, the major averages are firmly in positive territory. The Dow is up 225.11 points or 0.9 percent at 25,860.12, the Nasdaq is up 121.33 points or 1.6 percent at 7,497.30 and the S&P 500 is up 32.12 points or 1.2 percent at 2,787.58.
The strength on Wall Street comes as the results of the highly anticipated midterm elections on Tuesday came largely in line with expectations.
Democrats are projected to retake control of the House for the first time since 2010, as Democratic candidates managed to flip a number of suburban districts across the country.
Control of the House will give Democrats subpoena power, potentially leading to numerous investigations of President Donald Trump’s administration.
House Democrats will also play a much larger role if Trump hopes to achieve any major legislative accomplishments in the next two years.
Meanwhile, Democrats did not fare as well as in the Senate, as Republicans appear poised to expand their majority in the upper chamber.
Republican candidates won Democratic Senate seats in Indiana, Missouri, and North Dakota and are leading in tight races in Florida, Arizona, and Montana.
The GOP had been seen as likely to maintain control of the Senate due to the tough map faced by Democrats, who were defending 26 of the 35 seats on the ballot.
With Republicans expanding their majority, Trump will likely have an easier time pushing through more controversial judicial nominees.
Despite Republicans losing control of the House, Trump described the night as a “tremendous success” in a post on Twitter.
Software stocks have shown a substantial move to the upside in morning trading, resulting in a 3.4 percent spike the Dow Jones Software Index.
Significant strength has also emerged among healthcare stocks, as reflected by the 2.3 percent jump by the Dow Jones Health Care Index.
Pharmaceutical, energy, biotechnology and retail stocks have also moved notably higher, while tobacco stocks are bucking the uptrend.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index fell by 0.3 percent, while Hong Kong’s Hang Seng Index inched up by 0.1 percent.
Meanwhile, the major European markets have all moved higher on the day. While the German DAX Index is up by 0.6 percent, the U.K.’s FTSE 100 Index is up by 0.9 percent and the French CAC 40 Index is up by 1 percent.
In the bond market, treasuries have moved to the upside ahead of tomorrow’s Fed announcement. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.5 basis points at 3.189 percent.
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