The Nasdaq, Dow Jones, and S&P 500 indices opened higher, while oil prices plunged below $90 after the Democratic Party secured victory in the midterm elections. Meanwhile, J.D. Vance linked the Iran war to the Republican Party's election defeat.
On 5 Nov 2026 GMT+7, US stock markets rose at the open after the Democratic Party swept the midterm elections, gaining majorities in both the House of Representatives and the Senate. Investors were also encouraged by President Donald Trump's confirmation that he would accept the election results.
The Nasdaq opened up 1%, the Dow Jones rose 1.8%, and the S&P 500 increased 1.1% at the 9:30 a.m. Eastern US trading start. Retail stocks dependent on imports were active amid expectations of possible changes to import tax policies.
Investor confidence was further supported by Trump's social media post stating his readiness to accept the election outcome, which helped reduce political uncertainty that could impact markets.
On the oil front, prices declined. US West Texas Intermediate crude dropped 8.3%, closing at $88.12 per barrel, while Brent crude, the global benchmark, fell 8.7%, closing at $94.62 per barrel.
Investors are also watching the potential end to the US-Iran war and the Russia-Ukraine conflict, following reports of progress in negotiations. Oil prices had recently fallen to a four-week low after US Vice President J.D. Vance said the war with Iran was a major reason for the Republican Party's midterm election loss.
Andy Lipow, president of Lipow Oil Associates, said the election results led the market to assess that Trump might be more open to negotiating an agreement to end conflicts. The Democratic Party may seek to limit war funding. Additionally, Trump's announcement earlier in the week that the US would reduce some support budgets to Israel could pressure the Israeli government to accept US decisions.
Source: Aljazeera CNBC