Investors cheered the end of election uncertainty on Nov. 4. The Dow Jones Industrial Average jumped 1,569 points, or 3 percent, to close at 53,356, its best day since April 2025. Oil prices fell sharply as traders weighed what a Democratic Congress could mean for the war with Iran.
Not everything rose. Companies tied to artificial intelligence and the data-center buildout fell on fears that Democrats will bring more regulation. In Texas, Democratic Governor-elect Gina Hinojosa has pledged an immediate moratorium on new data centers.
On Nov. 5, the rally reversed. The Dow fell about 1,670 points, erasing nearly all of the previous day’s gain, as investors moved out of technology stocks for a second day and chip stocks had their worst day since March 2020.
Analysts say markets will keep watching inflation, interest rates and the Iran conflict as Washington prepares for divided government.