As the midterm elections results roll in early Wednesday morning, it appears that the Democrats will control the House of Representatives, while the Republican party will control the Senate. According to Reuters, markets on Wall Street and across the world celebrated the results with big jumps as many investors believe that tax cuts implemented under President Trump are likely to remain in place.
According to CNBC, at the time of this writing, the Dow Jones Industrial Average was up 1.35 percent, the S&P 500 was up one and a half percent, and the NASDAQ was up more than two percent.
“The good news in a way for markets is that there was an uncertainty that’s now been removed. We know where we stand for the next two years, and investors will focus back on the fundamentals, which are (company) earnings growth and the economy,” said Zürich Insurance Group’s chief market strategist, Guy Miller, during an interview with Reuters.
It wasn’t only the US markets which saw gains on Wednesday. The STOXX Europe 600 Index, which is comprised of 600 components in 17 European countries, was up by more than one percent. Australian markets also saw a modest gain, as did markets in Hong Kong.