Democrats Sweep Congress: Dow Soars 1,569 Points, TSX Jumps 809

📊 Today's North American Markets

1. Dow Surges 1,569 Points for Best Day of 2026 as Democrats Sweep Congress

Source: Yahoo Finance

US stocks jumped on Wednesday. The Dow rose 1,569.40 points, or 3.03%, to close at 53,356.12 — its best single-day performance of 2026 and its biggest one-day gain since President Trump paused a sweeping tariff rollout in April 2025. The S&P 500 climbed 1.58% to 7,688.62 and the Nasdaq added 1.44% to 25,736.51.

The trigger was Tuesday's midterm elections, in which Democrats won control of both chambers of Congress. Markets swiftly repriced the prospect of divided government and bet that newly elected officials and ballot measures could restrict data center construction. Chip stocks including Nvidia and Micron fell, while Apple and Microsoft each hit all-time highs, offsetting some of the drag.

Other assets moved in tandem: the 10-year Treasury yield fell to 4.894% and the VIX dropped 20.26% to 16.61. Brent crude slid about 8% to around $95 a barrel, weighing on energy shares. Investors will now watch for policy action on housing and pharmaceuticals after the election.

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2. AMD Beats Q3 Estimates as Data Center Revenue Jumps 97%

Source: Yahoo Finance

AMD reported third-quarter results after the bell on Tuesday that beat expectations on both lines: earnings per share of $2.09 on revenue of $13.38 billion, versus analyst projections of $1.97 and $13.08 billion. A year earlier it posted EPS of $1.20 on $9.2 billion in revenue. The stock was flat on Wednesday.

Data center was the standout, with sales of $8.5 billion versus estimates of $8.19 billion, up from $4.34 billion a year earlier — a 97% increase. CEO Lisa Su said demand for Instinct and EPYC products continued to strengthen and that growth should accelerate in the fourth quarter as the company scales Helios and Venice production.

Gaming was the weak spot: revenue of $773 million, down 40% year over year, though above the $655 million analysts expected. Higher memory and storage prices are pushing up costs for graphics cards and console chips, depressing demand. Client revenue, which includes PCs, came in at $2.9 billion, below the $3.06 billion Wall Street expected.

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3. CVS to Split in Two, Separating 9,000 Pharmacies From Insurance

Source: CNN

CVS Health said Wednesday it will split into two companies, one of the largest shakeups in the healthcare industry and a reversal of the mergers that built its $117 billion empire. Shares fell 12% in midday trading after initially ticking up premarket.

One company, to be named CVS Pharmacy, will house CVS's 9,000 retail pharmacies, mail order pharmacy, specialty drug business and MinuteClinic. The other, comprising Aetna, Caremark and two companies providing primary care and in-home health evaluations to seniors, will be called CVS Health in the interim. The separation is expected to close in early 2028 and will be a tax-free transaction for shareholders.

"We're basically taking what I believe is one great company and making it two," CEO David Joyner said. The company announced no store closures and said the split will not affect what patients pay for prescriptions. CVS also reported higher third-quarter earnings and revenue and raised its full-year guidance.

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4. TSX Rises 809 Points as Canada Follows US Rally

Source: CP24

Canada's main stock index gained more than 800 points Wednesday, while US markets also posted big gains after the midterm elections saw Democrats take control of Congress. The S&P/TSX composite index was up 809.12 points at 36,341.40.

In New York, the Dow Jones industrial average was up 1,569.40 points at 53,356.12. The S&P 500 index was up 119.70 points at 7,688.62 while the Nasdaq composite was up 364.50 points at 25,736.51.

The Canadian dollar traded for 71.63 cents US compared with 71.46 cents US on Tuesday. The December crude oil contract was down US$7.97 at US$88.12 per barrel, and the December gold contract was up US$132.60 at US$4,073.00 an ounce.

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5. Canada's Trade Surplus With the US Widens to $12.3 Billion

Source: Financial Post

Canada's month-over-month merchandise trade surplus with the United States widened to $12.3 billion in September from $12.1 billion, Statistics Canada data showed. Exports to the US rose 0.7%, mainly on higher shipments of unwrought gold and crude oil, while imports from the US increased 0.4% on higher shipments of processing units.

The US imposed Section 338 tariffs in late August after trade talks collapsed. The levies targeted roughly $27.6 billion worth of Canadian goods, including autos, dairy and alcohol, and many items previously exempt under the Canada-US-Mexico Agreement — such as plastics, furniture and electronics — also became subject to 50% levies.

Overall, Canada reported its largest trade surplus in four years, widening to $5.4 billion in September. But in volume terms exports were down 4%, and eight of 11 product sections declined. TD economist Marc Ercolao warned that until there is greater policy clarity, trade uncertainty will keep weighing on business confidence, investment and hiring.

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6. Canadians Call the Midterm Result a Victory, but Tariff Relief Is Not Guaranteed

Source: BBC

Ontario Premier Doug Ford said Wednesday morning that he was "doing cartwheels down the street," calling the result "a victory for Canada." Many in Canada had hoped for a Democratic sweep that would bring relief from US tariffs, though the report notes that is unlikely to arrive any time soon.

Tariffs featured heavily in Maine and Michigan. In Maine, Republican Senator Susan Collins clashed with the White House over tariffs and lost to Democrat Troy Jackson. In Michigan, Democrat Abdul El-Sayed defeated Republican Mike Rogers. In Ohio, Senator-elect Sherrod Brown called the levies a "disaster."

Democratic control of Congress may not change much: Trump's levies have been largely enacted through executive orders, and he retains veto power. A September Cato Institute survey suggested about 75% of Americans believe the tariffs have raised prices. Canada-US Trade Minister Dominic LeBlanc said Wednesday the results won't change Ottawa's trade agenda in the short term.

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7. Bank of Canada Governor: Federal Spending Is "Not Really" Adding to Inflation

Source: The Hub

Bank of Canada Governor Tiff Macklem told MPs that federal spending is "not really" adding to inflation in the central bank's latest forecast, while declining to assess specific fiscal targets and acknowledging that failing to follow through on government plans can damage credibility.

Conservative MP Tamara Jansen pressed Macklem on whether deficits were working against the bank's effort to contain inflation, and he replied that "you can't look at each thing in isolation." He said the bank puts actual government spending into its model, not fiscal targets: "We provide inflation guardrails."

The hearing came a week after the bank raised its policy rate for the first time since 2023, by 25 basis points to 2.5%, and days before the government tables its budget on Thursday. Macklem said higher oil prices are expected to push inflation to about 3.5% by year end, and that the bank will update its forecast once the budget is released.

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8. US Private Sector Adds 86,000 Jobs in October, Above Expectations: ADP

Source: Fox Business

Companies in the private sector added 86,000 jobs in October, payroll processor ADP said Wednesday, above economists' estimates of 69,000 and level with the prior month's revised 86,000. ADP chief economist Nela Richardson said employers of all sizes were hiring, and that job-changers were lured by bonuses, overtime and more hours in addition to higher base pay.

By sector, trade, transportation and utilities added 39,000 positions, education and health services added 28,000, leisure and hospitality added 19,000, financial activities added 15,000 and construction added 13,000. Professional and business services lost 27,000 jobs, while natural resources and mining shed 8,000.

By size, businesses with 500 or more employees gained 24,000 jobs, those with 50 to 499 employees added 33,000 and establishments with fewer than 50 employees gained 28,000. Attention now turns to Friday's nonfarm payrolls report, expected to show a gain of 65,000 with unemployment holding at 4.2%.

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9. Oil Falls Below $90 as Vance Blames the Iran War for Election Loss

Source: CNBC

Crude oil prices tumbled Wednesday. US West Texas Intermediate lost 8.3% to close at $88.12 a barrel, while Brent crude futures shed 8.7% to settle at $94.62. Vice President JD Vance blamed the war against Iran for Republican midterm reversals, writing that "the reason we lost is the war."

Democrats swept the House and Senate, giving the party leverage to pressure President Trump to end the unpopular war, which has spiked gasoline and diesel prices. Andy Lipow, president of Lipow Oil Associates, said the elections are leading the market to conclude that Trump might now be inclined to make a deal, and that Democrats may try to restrict funding for the war.

Oil futures have fallen more than 14% this week as senior US and Iranian officials indicated they are open to a diplomatic settlement. But Bob McNally, president of Rapidan Energy, warned that Iran remains hardened in its position and that Trump, having paid a huge political price for his goal of preventing Iran from obtaining a nuclear weapon, is unlikely to walk away.

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10. McDonald's to Launch New Value Bundles Next Year After US Traffic Slips

Source: AP News

McDonald's said Wednesday that US same-store sales fell 0.2% in the third quarter, the first retreat since early 2025, though not as bad as the 0.5% drop Wall Street expected. CEO Chris Kempczinski told investors the company recently began an eight-week test of mix-and-match and fixed-price bundles at 1,900 US restaurants, such as a McChicken sandwich and small fries for $3.50.

Around 4,000 franchisees have decided not to wait for the test results and have launched meal bundles of their own. Kempczinski said previous efforts had not been enough because they lacked compelling low-end deals: "You need to have good entry-level value, particularly with the low-income consumer."

Globally, same-store sales rose 1.3%, with strong sales in Germany and Australia offsetting weakness in France, which was rocked by protests beginning in September. Revenue rose 1% to $7.16 billion, short of the $7.28 billion expected. Net income rose 9% to $2.49 billion, and adjusted earnings of $3.57 per share beat the $3.38 forecast. Shares rose more than 5% in morning trading.

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