Democratic majority in both chambers of Congress lifts Ibex 35 and Wall Street

Democrats take both chambers and US stocks rally

Markets reacted on Wednesday, 4 November, to midterm results that give the Democratic Party a majority in both chambers of Congress, a setback for the Trump administration. Intraday figures reported by Europa Press show the Nasdaq up about 2%, the S&P 500 up 1.80% and the Nasdaq 100 up about 1.5%, while the Dow Jones gained between 2.11% (El Periódico) and nearly 3% (Europa Press), depending on the report. Big technology names led the advance, with Amazon up 7.38%, Microsoft up 6.60% and Apple up 6.40%. Nvidia was the exception, slipping 1.24%, while SpaceX fell about 4% and Tesla rose more than 2.5%.

Gold climbed 3.35% to $4,072 and bitcoin rose 3.5% to $80,332, according to the same report.

Amazon7.38%

Microsoft6.6%

Apple6.4%

Alphabet4.25%

Meta2.45%

Nvidia-1.24%

SpaceX-4%

Tesla (more than 2.5%)2.5%

Amazon

7.38 %

Microsoft

6.6 %

Apple

6.4 %

Alphabet

4.25 %

Meta

2.45 %

Nvidia

-1.24 %

SpaceX

-4 %

Tesla (more than 2.5%)

2.5 %

Data from the article text

The Ibex 35 and European banks

The Ibex 35 closed up 3% at 19,370.9 points, its best day since April, with banks doing most of the lifting. El Periódico put Banco Santander up 5.67%, BBVA up 5.00%, CaixaBank up 4.31% and Banco Sabadell up 3.56%, while La Razón reported gains of around 5% for Santander and BBVA. Indra, the defence contractor, fell close to 4% as investors judged that a Congress pressing for diplomatic de-escalation would weaken Trump's push for NATO members to raise military budgets. The DAX and the CAC 40 each gained close to 2%, according to La Razón. Spain's 10-year bond yield fell to 3.845% from 3.930% at Tuesday's close, and its risk premium over German bonds stood at 59.02 basis points.

Brent dropped 8.21% to $94.7 a barrel at the close of European markets, and West Texas Intermediate fell 7% to $89.36, according to Europa Press, which linked the drop to the election result.

Iran, Gaza and the war backdrop

Iran's Revolutionary Guard said four oil tankers had been destroyed after striking naval mines in the Strait of Hormuz, and that its forces had shot down another US MQ-9 Predator drone in the area. Iranian authorities read the Democratic win as a rejection of war, but Supreme Leader Mojtaba Jamenei dismissed the idea that the result would change Washington's policy toward Iran. Hamas-run authorities in Gaza said more than 1,600 Palestinians had been killed by Israeli army attacks since the ceasefire that took effect in October 2025. Traders had already priced in on Wednesday that the new Democratic majority would add pressure on Trump to end the war in Iran.

Thursday's follow-through

European indices extended their gains on Thursday, 5 November. The Ibex 35 rose about 1.5% in early trading, above 19,600 points, while Paris advanced 1.2%, London 0.9% and Frankfurt 0.30%, according to LaVanguardia. The euro edged up to $1.124, and US futures pointed to slight declines after Wednesday's rally. Asian markets were mixed during Thursday's session, with the South Korean market reported down 5% on its exposure to technology and artificial intelligence stocks, Tokyo down 1.6% and Hong Kong up 3.6%.

Analysts at Jupiter AM, Amadeo Alentorn and Ned Naylor-Leyland, urged caution, arguing that market uncertainty had been elevated for some time because of doubts about valuations, market concentration and the AI cycle. Spain's general election is set for 29 November, according to El Periódico.