Trump credits stock rally after Democrats capture Congress

President Donald Trump claimed credit for a sharp rise in stock prices on Wednesday, one day after midterm elections resulted in Democratic control of both chambers of Congress. He shared a post on Truth Social stating that the market had hit a record high in 91 days, less than two years after his inauguration. The post read: "Stock Market just hit another Record High, 91 Days in just a short period of time, Less than two years. Your 401(k)s are through the roof. Record Setting All! President DONALD J. TRUMP."

Wall Street moved upward on Wednesday despite the Republican Party losing sole control of the government. The Dow Jones Industrial Average gained 1,519 points, a 2.9% increase. The Nasdaq composite rose 1.9% by the afternoon. This follows a pattern where stocks often perform well in the months after any U.S. midterm election, regardless of which party wins.

The 2026 midterms were particularly difficult for Republicans, with multiple GOP states and government positions flipping to the Democrats. The Democratic Party is set to take control of the Senate and the House of Representatives. Analysts suggest Wall Street viewed this political shift as a preferred scenario, driving the jump in prices.

Trump retains executive authority over defense, foreign policy, and trade. In an interview with Fox News, he said he would work with the new Democratic leadership. He told the network, "Congratulations to the Democrats. I think the Democrats did a good job. They fought hard. They’ve been fighting me for a long time. This fight’s been going on for ages." He added that he believed the Democrats wanted to work with him.

The market rally occurred against a backdrop of a divided government. While the president maintains command over key executive areas, legislative power now rests with Democrats in both the Senate and the House. This configuration marks a shift in the balance of power in Washington following the November elections.