Trump praises 401(k) gains as Dow surges 1,519 points after midterm losses

American investors saw immediate gains in their portfolios on Wednesday as the stock market hit a new peak. The Dow Jones Industrial Average climbed 1,519 points, a 2.9% increase, while the Nasdaq composite rose 1.9% by the afternoon. This surge occurred just one day after the midterm elections concluded, during which the Republican Party lost its sole control of Washington.

President Donald Trump took to Truth Social on Wednesday to attribute the market performance to his administration. He wrote that the stock market had hit a record high for the 91st time in a short period, noting that this happened in less than two years. In the post, he stated that investors' 401(k) accounts were 'through the roof' and that the results were 'Record Setting All.'

Financial markets have historically performed well in the months following midterm elections, regardless of the winner. However, this year's results were particularly damaging for the GOP, with several states and government positions flipping to the Democrats. The Democratic Party is set to take control of both the Senate and the House of Representatives. Analysts suggest Wall Street viewed this split government as a preferred political scenario, driving the price jump.

Despite the legislative shift, Trump retains executive authority over defense, foreign policy, and certain trade matters. He signaled a willingness to cooperate with the incoming congressional leadership during an interview with Fox News. The president told the network, 'Congratulations to the Democrats. I think the Democrats did a good job. They fought hard. They've been fighting me for a long time. This fight's been going on for ages.'

When asked about future collaboration, Trump added, 'I would do that. I think the Democrats want to work with me.' This statement comes as the new political balance takes shape, with Democrats holding the legislative agenda and the executive branch retaining key policy levers.