Stock market shows largest gains of the year after midterm massacre

The stock market reacted positively to the results of the midterm elections on Wednesday when the Dow Jones Industrial Average jumped by 1,600 points.The 3% gain in the Dow Jones was the largest so far this year. The S&P 500 index gained 1.6%, and the Nasdaq Composite Index increased by 1.4%.'The elections are leading the market to conclude that Trump might now be inclined to make a deal.'Vital Knowledge founder and market analyst Adam Crisafulli said the indices were responding positively to closing another election."Investors are happy to have the midterms out of the way," he said. "This was a major source of uncertainty, and putting it in the rear-view mirror removes a key obstacle heading into a very favorable time of year seasonally."The price of U.S. crude oil also fell by 8.3% to around $88.12 a barrel in hopes that the military operation in Iran might come to an end."The elections are leading the market to conclude that Trump might now be inclined to make a deal," said Lipow Oil Associates president Andy Lipow.The president appeared to take credit for the stock market highs in a post on social media."Stock Market just hit another Record High — 91 Days in just a short period of time — Less than two years. Your 401(k)s are through the roof. Record Setting All!" he wrote on Truth Social.Some analysts said the gridlock of a divided government reduces volatility and eases uncertainty in the business community. RELATED: Oil and stock markets have surprising reaction to Iranian attack on US bases Frustration over the economy was one of the main drivers of the success for Democrats in the elections, according to exit polling.The president acknowledged Americans' anger over high gas prices in an interview with Fox News after the election."I think it's the gasoline price," he said. "People agree with what I'm doing on Iran, but they really probably weren't willing to do the short-term consequence of paying more for gasoline, and that, you know, I understand that."Like Blaze News? Bypass the censors, sign up for our newsletters, and get stories like this direct to your inbox. Sign up here!