US stocks jump and the Dow climbs 1,500 points as the price of Brent oil falls below $95 a barrel.

NEW YORK — U.S. stocks are soaring Wednesday after President Donald Trump’s party lost sole control of Washington in the midterm elections.

Stocks generally do well in the months following U.S. midterm elections, regardless of who wins, and the S&P 500 jumped 1.8%. The Dow Jones Industrial Average was up 1,519 points, or 2.9%, as of 2:06 p.m. Eastern Time, and the Nasdaq Composite Index was up 1.9%.

Shares of solar energy companies, dollar stores and hospital owners led the way as Wall Street tried to sort winners from losers following widespread Republican losses. Investors, meanwhile, see risks for Trump’s social media business, the artificial intelligence industry and companies owned by Elon Musk, who has made large donations to Republicans.

The price of a barrel of Brent crude oil fell below $100 for the first time in almost a month. Vice President JD Vance blamed the war with Iran, which caused a surge in oil prices, for Republicans’ midterm losses.

Wall Street strategists urged investors not to get carried away with the election because it might not matter much to the market as a whole in the long run. Stock prices depend more on the direction of corporate profits and interest rates than on who controls what in Washington.

“Profits trump elections,” according to Brian Jacobsen, chief economic strategist at Annex Wealth Management.

Yet Wall Street may have secured a sweet spot political scenario as Democrats are poised to take control of the Senate and House of Representatives. Wall Street generally prefers shared control from Washington because it reduces the risk of transformative changes in the economy.

WATCH: Takeaways from the 2026 midterm elections and answers to your election questions

Of course, much remains impossible to predict, and Trump retains executive power in key areas such as defense, foreign policy and, in some cases, trade.

A pessimistic forecast could be that “Trump is no longer a lame duck, but an angry duck” which could reignite tensions over tariffs and military spending levels by NATO allies, said Carsten Brzeski, global head of macro at ING bank.

An optimistic view, Brzeski said, is that Trump becomes “a tame duck…that he will slow down any disruptive efforts and focus more on trying to win the Nobel Peace Prize by ending the two major wars without much disruption, and on trade, nothing happens except a few words.”

Here’s a look at some of the moves rippling through financial markets:

Trump Media and Tesla are down

Trump’s social media company, Trump Media & Technology Group, was one of the market’s biggest losers, down 16.6%.

LEARN MORE: Trump Media replaces Nunes as Truth Social CEO after stock plunge wipes out billions

After briefly hitting a high of $175 five years ago, it fell to $5. Its main business is Truth Social, which is best known for Trump’s posts on the platform.

Elon Musk’s businesses have also struggled. Tesla fell 2.4% and SpaceX fell 4.8%. Musk, a former top Trump adviser, is among the possible targets of investigations by a Democratic-controlled Congress.

AI companies in general are under pressure

Trump has been a big supporter of the AI ​​industry, and Democratic victories across the country could mean more regulations or restrictions. Political parties are increasingly concerned about AI in general.

Investors see Democratic victories in Texas in particular as potentially slowing the construction of new AI data centers. AI-related stocks came into Election Day already under pressure due to concerns that their prices had reached too high levels.

WATCH: News Wrap: AI giant Anthropic prepares for IPO

Nvidia, the chip company that has quickly become a poster child for the frenzy around AI-related stocks, fell 1.8% and was the heaviest hit in the S&P 500. CoreWeave, a company that rents access to AI chips to its customers via the cloud, fell 10.2%.

Advanced Micro Devices, another chip giant, fared better. It rose 0.1% after reporting profit for the latest quarter that was much higher than analysts expected.

Companies that spent a lot of money on AI chips also performed better. Alphabet rose 4%, for example, after falling more than 12% on Thursday, hitting its worst loss on record, on concerns it was overspending on AI investments.

Defense stocks are falling

A Democratic-led Congress could push Trump to abandon war with Iran.

That helped drive down shares of companies that make weapons and other equipment for the U.S. military, including declines of 7% for Lockheed Martin, 4.2% for Northrop Grumman and 2.4% for General Dynamics.

Green energy companies are rising and oil prices are falling

Democratic control of Congress could pave the way for companies in the solar and wind sectors. First Solar jumped 5.8% and Enphase Energy jumped 4.7%.

At the same time, shares of major oil companies fell. ExxonMobil fell 4.9% and ConocoPhillips fell 5.6%. They rallied for much of the year after Trump and Israel started war with Iran, which sent crude prices soaring.

The price of a barrel of Brent crude, the international standard, plunged 8.6% on Wednesday to $94.70.

The price of the most actively traded contract on the Brent market hovered between $70 and $120 per barrel just before the start of the war with Iran.

Health care stocks and dollar stores also rebounded

A Democratic-led Congress could attempt to reverse some of the cuts to federal health care and food assistance that Republicans approved over the summer in their “One Big Beautiful Bill Act.”

That helped stocks climb in the healthcare sector, including a 9.6% rise for HCA Healthcare, which operates hospitals and outpatient sites.

WATCH: The cost of health care a major concern for voters as midterm elections approach

Retailers also benefited from hopes that Democrats could push through policies aimed at helping Americans struggling to cope with the rapidly rising cost of living. Dollar Tree, which focuses particularly on low-income Americans, had one of the biggest jumps in the market and rose 8.9%.

Bond yields are falling

In the bond market, Treasury yields have eased. That could be a sign that investors see less risk of Washington piling on more debt on its already tall mountain with the end of one-party control coming.

LEARN MORE: Further swings in bond yields rock financial markets around the world

Treasury yields surged throughout the summer and hit their highest levels in decades on concerns about the size of the U.S. government’s debt, as well as rising inflation and other concerns. A Democratic-controlled Congress could act as a brake on increased spending and tax cuts that would widen Washington’s deficit.

The 10-year Treasury yield fell to 4.89% from 4.95% Tuesday evening.

Stocks jump across much of the world

Indexes rose across most of the world. Stocks jumped 2% in Paris, 2.2% in Shanghai and 1.8% in London. Japan’s Nikkei 225 index was the exception and fell 1.4%.

AP Writer Elaine Lai contributed to this report from Hong Kong, and McHugh from Frankfurt, Germany.