The Dow Jones Industrial Average surged Wednesday as investors piled into shares of economically sensitive companies on bets that the Democrats were poised to take control of the Senate following early results from Georgia’s runoff elections.
The index of blue-chip companies jumped 1.6% in recent trading, gaining about 475 points. The S&P 500 rose 1%.
Meanwhile, the tech-heavy Nasdaq Composite turned positive, adding 0.2% after tumbling when markets opened as investors worried that a Democrat-controlled Congress would lead to higher taxes and tighter regulations on tech giants.
Those concerns seemed to fade, however, as the day progressed, with some investors and analysts saying that they don’t expect policy changes to be imminent. Plus, some said, even if Democrats take control of both Senate seats in Georgia, moderate-leaning Democrats may act as a check on a more progressive agenda.
“With a potential razor-thin majority, drastic change is unlikely,” said Jeffrey Buchbinder, equity strategist at LPL Financial.