Stock Market News: Dow wins Democrats in House and Republicans in Senate

Shares rose on Wednesday after the mid-term elections of 2018 that changed the balance of power in Washington, Wall Street preparing for the eventuality of legislative hurdles within a country. Congress divided.

The Dow Jones Industrial Average Index jumped 1%, or more than 250 points, and the Nasdaq Composite Index, up 1.2%. The S & P 500 was up 1.1%. Democrats took control of the House early Wednesday morning, gaining more than 26 seats, while Republicans widened their majority in the Senate.

"In other words, certainty has prevailed the day," said Paul Eitelman, strategist at Russell Investments. "If the unimaginable scenario of a democratic takeover of the House and Senate had been won, we think the markets would probably have evolved more significantly in the coming days."

Shares of medical companies surged, with the S & P 500 Health Care Index up 1.9%. A repeal of the Affordable Care Act or other measures that could reduce medical costs was unlikely as a result of the results. DaVita jumped nearly 13% after California rejected the cap on dialysis revenues.

Cannabis stocks rallied after Michigan's legalization of recreational use of weeds, which was the first Midwestern state to do so. In the meantime, Utah and Missouri have passed legislation making marijuana legal for medical purposes. The shares of Tilray increased by 7% and those of Aprhia by 5%.

Colorado oil companies rose after voters rejected a vote measure that would have limited drilling and fracking in the state, particularly in the prolific Denver-Julesburg Basin. The shares of Anadarko Petroleum and Noble Energy both jumped more than 7%.

With less likely short-term expansionary fiscal measures, analysts say the dollar has depreciated against a basket of currencies. Treasury yields declined, with the 10.2% rate falling 1.5 basis points over 10 years.

At the same time, the US Federal Reserve is expected to maintain its stable monetary policy during a meeting on Thursday. The central bank raised its benchmark interest rate by 25 basis points to 2.25% in September and said the next rise could be in December.

The earnings season continued, with BMW recording a 24% drop in net earnings in the third quarter. 21st Century Fox reported higher profits, but disappointing sales. Disney, which received Tuesday the approval of regulators of the European Union to acquire the cable business, is expected to report on Thursday.