US stocks close higher after midterm elections

New York: US stocks closed higher after the results of the country’s midterm elections came out as expected.

The Dow Jones Industrial Average on Wednesday was up 545.29 points, or 2.13 per cent, to 26,180.30. The S&P 500 rose 58.44 points, or 2.12 per cent, to 2,813.89, Xinhua news agency reported.

The Nasdaq Composite Index rose 194.79 points, or 2.64 per cent, to 7,570.75.

While four Senate seats and dozens of House seats are still in contest, it is almost certain that the Democratic Party will gain control of the House of Representatives and the Republican Party will solidify its grip on the Senate.

Investors were bullish following the result as they believed that gridlock in Washington will help the market.

They expected US President Donald Trump’s pro-business policies to continue and that the Congress will provide a larger check on his disruptive moves such as his trade policies toward the country’s major trading partners.

Investors were also closely monitoring what the central bank has to say as the Federal Reserve kicked off a two-day meeting on Wednesday.

The Fed is largely expected to keep the rates unchanged this month and raise rates again in December. Concerns about the pace of interest rate hikes led to market volatility last month.

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