U.S. stocks soared with the Dow Jones Industrial Average jumping 545 points, moving above the 26,000 level for the first time in a month.
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Investors celebrated the outcome of the midterm elections that had the Democrats taking back the house and the Republicans maintaining hold of the Senate. A "best case scenario" for U.S. equities, according to several strategists. All three major U.S. averages jumped a healthy 2 percent plus.
|I:DJI||DOW JONES AVERAGES||24370.1||+162.94||+0.67%|
|I:COMP||NASDAQ COMPOSITE INDEX||7084.4633||+49.77||+0.71%|
Healthcare stocks rallied nearly 3 percent as top performers in the S&P, as investors view the Democratic win as a positive with several medicaid ballots passing in key states such as Idaho. Industrial companies, including Dow member Caterpillar, also got a boost as well on the view that both parties will support infrastructure efforts.
|VHT||VANGUARD WORLD FDS VANGUARD HEALTH CARE ETF||166.98||+1.54||+0.93%|
|XLI||INDUSTRIAL SELECT SECTOR SPDR ETF||68.88||+1.16||+1.71%|
The resignation of Attorney General Jeff Sessions also gave weed stocks a boost. Session has been against legalizing marijuana at the Federal level. Even before his departure was announced these stocks rallied as several states voted in favor of legalization.
|CGC||CANOPY GROWTH CORP||42.77||+0.67||+1.59%|
As far as history goes, the divided Congress, is good for U.S. stocks.
According to Dow Jones Market Data, analyzing markets and election data going back to 1970, this scenario is the best case for U.S. stocks one year after an election, with the broad-based S&P 500 index up 19.9 percent, on average one year later.
Some investors were concerned the Democrats would sweep the Republicans in tight races, in a so-called "blue wave," yet such a landslide did not occur. The Democrats, particularly those seen as potential presidential contenders in 2020, saw victory. Sen. Bernie Sanders of Vermont and Sen. Elizabeth Warren of Massachusetts won their races. FOX Business has been covering the national and local economic and business issues impacting voters.
On Wednesday, as investors digest the race results, many will also turn their attention to the Federal Reserve, which begins its two-day November meeting. While no change in interest rates is expected, policymakers are widely expected to hike rates in December.
FOX Business' Leia Klingel contributed to this report.