Republicans sweep both houses
In one of the most dramatic political shifts for President Obama since 2009, the Republicans have gained control of both houses of Congress. The Grand Old Party (or GOP), as the Republicans are known, easily held onto their majority in the House of Representatives. To gain a majority in the Senate, the Republicans had to win six additional seats and hold on to the rest.
They managed to take eight seats from the Democrats, winning by a wider margin than any polls had suggested. The seats won by the Republicans were from North Carolina, South Dakota, Montana, Colorado, Iowa, Alaska, Arkansas, and West Virginia.
Markets rise following results
With power in both houses shifting into the hands of a single party, there’s hope that things will move faster in the Congress. Markets too rose on this hope. The Dow Jones Industrial Average and the S&P 500 gained ~0.6%.
The SPDR Dow Jones Industrial Average ETF (DIA) and the iShares Dow Jones U.S. Index fund ETF (IYY), that tracks the Dow Jones gained ~0.6%. Both the SPDR S&P 500 ETF Trust (SPY) and the iShares S&P 500 Index ETF (IVV), each tracking the S&P 500 index, gained ~0.7%.
The NASDAQ Composite Index, however, dropped by 0.1% to 4620.72 points. The Vanguard Total Stock Market ETF (VTI) also dropped by ~0.4%
In the next article in this series, we’ll look at how the Republican Party feels about President Obama’s defense policies.