US markets soared on Wednesday as the midterm elections results came in as expected, getting rid of lingering uncertainty amongst investors in the market. The Democrats gained control of the House of Representatives while Republicans retained the Senate. A gridlocked parliament historically has proven to provide strength in equity markets. Markets hit the session highs after President Trump suggested he would be willing to work with Democrats on policy initiatives. The Dow rose 2.13%, the S&P 500 rose 2.12% and the Nasdaq rose 2.64%.
The Dow Jones Industrial Average finished higher by 545 points as gains in Caterpillar +4.5% and United Health + 4.2% helped push the index higher. The only percentage decliner on the Dow was Procter & Gamble shares, a more defensive stock, falling by 0.2%. A rise across the board in markets, saw a decline in volatility as the VIX index fell 3.55 points to 16.36, its lowest point in a month.
Tech also shares gained a boost as a divided parliament may make it harder for President Trump to legislate against in the past President Trump has been critical of Amazon, along with the social media companies highlighting the need for more regulation in the industry. Shares of Amazon rose 6.86%, Google +3.62%, Apple +3.03% and Netflix +5.36%
On the earnings front and after the final bell, Roku shares plummeted down 13% despite beating on both top and bottom lines, Wynn Resorts shares have fallen 12% following mixed results, TripAdvisor shares are rising 11.5% beating on earnings and Square share fell 5% after the video game company beat on revenue forecasts.
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