Tech, healthcare boost Wall St after midterm results
INTERNATIONAL – US stocks rose strongly on Wednesday as investors piled into technology and healthcare sectors after midterm elections led to a divided Congress as expected and fueled bets that tighter regulations would be harder to push through.
Democrats won control of the House of Representatives on Tuesday, while President Donald Trump's Republicans expanded their majority in the Senate, pointing to a political gridlock in Washington.
The technology and healthcare sectors rose more than 2 percent each as fears of stricter regulations curbing on their growth eased.
Health insurers Humana, Anthem and UnitedHealth Group jumped to record highs as voters in three states approved expanding Medicaid programs for low-income people.
The communication services sector rose 1.5 percent, led by gains in Facebook, Netflix and Alphabet.
While a divided Congress will hamper Trump's political and economic agenda, few expect a reversal of corporate tax cuts and deregulation measures that have already been enacted, allowing investors to buy back into a market attempting a recovery from its worst month in seven years in October.
"For today, the market is breathing a sigh of relief because that point of uncertainty is off the table," said Anthony Chan, chief economist at J.P. Morgan in New York.
"They are very excited that there is also opportunity to negotiate trade (with China)."Reuters