{"id":74152,"date":"2026-11-04T14:08:24","date_gmt":"2026-11-04T18:08:24","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/democrats-sweep-midterms-as-markets-rally-trump-media-hits-record-low\/74152\/"},"modified":"2026-11-04T14:08:24","modified_gmt":"2026-11-04T18:08:24","slug":"democrats-sweep-midterms-as-markets-rally-trump-media-hits-record-low","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/democrats-sweep-midterms-as-markets-rally-trump-media-hits-record-low\/74152\/","title":{"rendered":"Democrats Sweep Midterms as Markets Rally; Trump Media Hits Record Low"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Democrats have secured control of both the U.S. House and Senate<\/strong> in the 2026 midterm elections, with Leader Hakeem Jeffries projecting a majority of at least <strong>255 seats<\/strong> in the House.<\/li>\n<li><strong>Trump Media &amp; Technology Group (<a href=\"\/stock\/DJT\">DJT<\/a>) shares plummeted 11%<\/strong> to a fresh all-time intraday low of <strong>$5.23<\/strong> following the election results, even as broader markets surged.<\/li>\n<li><strong>The <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"\/stock\/DIA\">DJI<\/a>) jumped over 1,100 points<\/strong> in a relief rally as investors reacted to the prospect of a divided government and conciliatory remarks from President Trump.<\/li>\n<li><strong>Defense Secretary Pete Hegseth&#39;s future is in question<\/strong> following the GOP losses, with Florida Governor <strong>Ron DeSantis<\/strong> being floated as a potential replacement at the Pentagon.<\/li>\n<li><strong>House Democrats&#39; immediate legislative agenda<\/strong> includes reversing <strong>Medicaid cuts<\/strong>, extending <strong>ACA tax credits<\/strong>, and reasserting authority over <strong>trade tariffs<\/strong>.<\/li>\n<\/ul>\n<p>The landscape of American politics shifted dramatically on Wednesday as Democrats reclaimed majorities in both chambers of Congress. House Democrat Leader <strong>Hakeem Jeffries<\/strong> declared victory, stating that the party is on track to hold at least <strong>255 seats<\/strong>. Jeffries also confirmed that <strong>Katherine Clark<\/strong> is poised to become the next House Majority Leader, marking a historic leadership transition as the party prepares to serve as a legislative check on the Trump administration.<\/p>\n<p>In the financial markets, the &quot;blue tsunami&quot; triggered a sharp divergence between political proxies and broader indices. While the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>)<\/strong> and <strong>Nasdaq-100 (<a href=\"\/stock\/QQQ\">QQQ<\/a>)<\/strong> trended higher, Trump Media &amp; Technology Group (<a href=\"\/stock\/DJT\">DJT<\/a>) saw its market capitalization erode further. The stock hit a record low of <strong>$5.23<\/strong>, wiping out millions from the former president&#39;s net worth. <em>Analysts suggest the sell-off reflects investor concerns over increased oversight and the potential for a &quot;lame-duck&quot; period for Trump&#39;s signature policy initiatives.<\/em><\/p>\n<p>President Trump, however, maintained a bullish tone regarding the broader economy. In a Truth Social post, he touted that the stock market has hit <strong>91 record highs<\/strong> in less than two years, claiming that &quot;401(k)s are through the roof.&quot; Despite the election losses, Trump signaled a willingness to work with the new Democratic majorities, a move that <em>market participants interpreted as a stabilizing factor for the technology and AI sectors.<\/em><\/p>\n<p>The fallout from the GOP&#39;s &quot;catastrophic&quot; losses has already reached the Cabinet. Sources report that Trump is consulting advisers on whether to replace Defense Secretary <strong>Pete Hegseth<\/strong>. The administration has faced internal criticism, with Vice President <strong>JD Vance<\/strong> publicly blaming the ongoing war with Iran for the party&#39;s defeat. Florida Governor <strong>Ron DeSantis<\/strong> has emerged as a top contender for the role, with some suggesting a confirmation could be fast-tracked during the upcoming lame-duck session.<\/p>\n<p>On the policy front, the Treasury Department&#39;s <strong>Office of Foreign Assets Control (OFAC)<\/strong> issued fresh Iran-related sanctions on Wednesday, targeting individuals and entities linked to the conflict. Simultaneously, Jeffries outlined a healthcare-centric agenda for the new Congress. He pledged to prioritize the reversal of <strong>Medicaid cuts<\/strong> and the restoration of <strong>Affordable Care Act (ACA)<\/strong> tax credits, which could provide a tailwind for hospital operators and healthcare insurers exposed to government-funded programs.<\/p>\n<p>Defense contractors such as Lockheed Martin (<a href=\"\/stock\/LMT\">LMT<\/a>) and RTX (<a href=\"\/stock\/RTX\">RTX<\/a>) are also under scrutiny as the new Democratic majority prepares to exercise its &quot;power of the purse.&quot; Jeffries indicated that Democrats would seek to end U.S. involvement in the Iran war and roll back the administration&#39;s tariff regime. <em>This shift in trade and foreign policy is expected to introduce new volatility into global supply chains and energy markets in the coming months.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Democrats have secured control of both the U.S. House and Senate in the 2026 midterm elections, with Leader 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