US stocks surge as Democrats win control of Congress in midterm elections

US stocks surged on Wednesday after Democrats secured control of both chambers of Congress in Tuesday's midterm elections and President Donald Trump accepted the results. The outcome eased political uncertainty that had weighed on Wall Street.

Why did US stocks surge after Democrats won Congress?

All three major indexes rallied on Wednesday. The Dow Jones Industrial Average rose 1,024 points, or 2%, the S&P 500 gained 1.5% and the Nasdaq Composite climbed 2%, as the election result eased the political uncertainty that had weighed on investors.

How did oil prices react to the election results?

Oil prices moved in the opposite direction. US West Texas Intermediate crude futures fell 2% to about $94 a barrel.

Brent crude, the international benchmark, dropped more than 3% toward $100 a barrel, extending losses for a third consecutive session. Traders assessed the election outcome and diplomatic efforts to end the war with Iran.

Brent was trading at $100.30 a barrel as of 1425 GMT, down $3.30, or 3.2%, from Tuesday's settlement of $103.60.

What did Democrats win in the midterm elections?

Democrats won the House of Representatives and the Senate, securing majorities in both chambers of Congress. They captured Republican-held Senate seats in Texas, Kansas, South Carolina, North Carolina and Ohio.

The results mean Trump will face Democratic majorities in both chambers when the new Congress convenes in January. This could reshape the legislative landscape for the remainder of his presidency.