The Washington Post has reported that this is the Dow’s sixth up day in seven sessions, gaining 2.13 % to hit 26,180 end of trading. Companies like Caterpillar, UnitedHealth. Pfizer and Microsoft led the pack of companies with rising stock prices. The S&P’s 500-stock and the Nasdaq composite followed with increases of 2.12 percent and 2.64 percent, respectively. The S&P 500 should continue to march higher for the rest of 2018 and into 2019.

On the other hand, oil prices dropped.

“With the conclusion of this year’s midterm elections, the cloud of uncertainty has been lifted, allowing stocks to resume their recovery from the October sell-off,” said Sam Stovall, chief of U.S. equity strategy at CFRA.

The split decision of Democrats taking the House and Republicans retaining influence on the Senate can halt tax cuts that Trump was proposing for the second half of his term.

“Having gotten tax cuts, spending increases and de-regulation in the past two years, the market is glad to take two years of stasis now,” said Ed Keon, chief investment strategist at QMA.

Experts are anticipating tensions between Trump and Nancy Pelosi, House Democratic Leader. Pelosi, who is also gunning for the post of Speaker. Reports suggest that Pelosi, if she gets chosen as Speaker, can play a crucial policy role in the President’s office.

However, Trump and the Democrats may have common interests in the field of infrastructure as both sides have shown keenness to pass legislation on it. Construction, materials and industrial stocks, including Honeywell and United Technologies in addition to Caterpillar, could benefit from a big infrastructure program that includes ports, airports, roads and bridges.

Kristina Hooper, chief global market strategist at Invesco, said the mid-week rebound was baked in to the market, including the drop in technology stocks leading up to the election. “Over the last month, the stock market began to price in this political scenario, which is one of the reasons we saw stock losses and higher volatility,” Hooper said.

There is the potential for tech to come under greater regulation with the new composition of Congress. That was also priced in for the last month,” she said, “so I’m not surprised to see tech up today in keeping with the adage of selling on the rumor, buying on the news.”

Hooper said the gridlock in Congress is affecting health-care companies “because the Affordable Care Act will be protected with a Democratic majority in the House and because of the success of Medicaid expansion ballot initiatives. That’s particularly good for hospitals and insurers.”