US markets have soared on the back of the mid-term election results, with positive sentiment buoyed by a largely anticipated result.
The Democrats have taken the House of Representatives for the first time in eight years, while US president Donald Trump’s Republicans have retained control of the Senate.
As the results became clearer, US markets began surging with investors piling into mainly technology and healthcare stocks, with the expectation that a divided Congress would be unable to pass new regulation on the sectors.
The tech-heavy Nasdaq led the gains, up 2.64 per cent at the close, while the Dow Jones rose over 500 points to finish up 2.13 per cent and the S&P 500 put on 2.12 per cent.
While congressional gridlock will hamper Trump’s agenda for the next two years of his presidency, it will not affect the market-friendly corporate tax cuts and deregulation measures that have already been passed.
Even as some seats are yet to be finalised, both parties have claimed the mid-term election results as a success.
Trump told the media that the Republicans had “defied history” while Democrat House of Representatives leader Nancy Pelosi said that the result will re-establish “checks and balances” on the Trump administration.
Received so many Congratulations from so many on our Big Victory last night, including from foreign nations (friends) that were waiting me out, and hoping, on Trade Deals. Now we can all get back to work and get things done!
— Donald J. Trump (@realDonaldTrump) November 7, 2018
Following the results, US Attorney-General Jeff Sessions (who had been one of the biggest opponents to the marijuana legalisation movement in the US) resigned on Trump’s request, sending cannabis companies soaring higher, with pot stock Tilray rocketing up more than 30 per cent on the news.