US Market: Dow Jones Records Best Day Since April 2025, Gains 1,570 Pts; Nasdaq, S&P 500 Rise Too; Here's Why

The US stock market witnessed one of its strongest single-day performances, with the Dow Jones rising by more than 1,500 points. A host of factors drove bulls on Wall Street, and on the top of the list is the Democrats' victory in the US midterm election. Also, a nearly 10% decline in crude oil prices due to political pressure for a truce with Iran and a correction in treasury yields also added to the performance. Further, the Magnificent 7 stocks were in the lead of the rally. However, in the early hours of Thursday, US stock futures are traded on a mixed note.

Dow Jones at 3-Months High

The Dow Jones Industrial Average or DJIA index surged by 1,569.40 points or 3.03% to end at 53,356.12. This is the strongest single-day rally since April 2025, pushing the index to hit a 3-month high.

Among the top gainers were Apple Inc thar surged 5.31%, while Amazon rallied 6.12%. Further, Alphabet stock gained 3.2% and Microsoft outperformed its rival with nearly 7% upside. Other large-caps like McDonald's and Nike surged by 6.5% and 5.2%. JP Morgan and Walt Disney also gained by 4.18% each.

Investors also assessed the latest corporate earnings, with AppLovin jumping more than 20% in after-hours trading following stronger-than-expected quarterly results and positive guidance, while Qualcomm fell over 7% despite reporting better-than-expected earnings, as per Trading Economics.

Meanwhile, the Nasdaq Composite index soared by 364.50 points or 1.44% to close at 25,736.51 and S&P 500 index rallied by 119.70 points or 1.6% to finish at 7,688.62.

The Democrats victory in the Congress house was welcomed with bullish sentiment. US President Donald Trump said he is absolutely willing to accept those results and has promised to work with the Democrats. Trump's Republican party faced a sharp decline in the midterm election, winning just 40 seats. Among key reasons to their loss is attributed to the rise in cost of living, tariff hikes and Iran conflict that pushed gasoline prices extremely high, angering citizens.

US Stock Futures

In the early trade of Thursday, the Dow Jones futures advanced by 131 points or 0.24% to trade at 53,634, however, the Nasdaq futures plunged by 109.50 points or 0.4% to trade at 28,457.25. Additionally, the S&P 500 futures performed lower by 2.50 points to 7,720.25.

Brent has fallen almost 10% to around $94.50 as traders removed part of the war premium after signals that political pressure could push the US administration toward negotiations with Iran. Unlike the earlier gradual decline, the magnitude of this move can materially improve India's near-term macro and earnings outlook if sustained, as per Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.

However, the fall remains driven by expectations rather than a confirmed settlement or full restoration of energy flows, leaving crude vulnerable to any setback in negotiations.

The expert also added that the US 10-year Treasury yield eased to around 4.87%, reducing some valuation pressure on global equities. The combination of lower yields, falling crude and improving risk appetite is more constructive for India than a yield decline caused solely by flight-to-safety demand.

Wall Street ended sharply higher, with the Dow Jones Industrial Average surging 3%, while the S&P 500 and Nasdaq Composite advanced 1.58% and 0.91%, respectively. However, sentiment across Asian markets remains subdued, with Japan's Nikkei reversing its early gains to trade nearly 1% lower, while South Korea's KOSPI has declined more than 3%, reflecting persistent weakness in technology stocks, as per Ponmudi R, CEO of Enrich Money.

Against this mixed global backdrop, the sustainability of foreign institutional inflows, movements in crude oil prices and the ability of domestic benchmarks to hold on to their initial gains will be key factors shaping market direction through the session.

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