Stock market today: Dow rallies 1,300 points, S&P 500 and Nasdaq gain after Democrats win control of Congress

US stocks jumped on Wednesday after Democrats won control of both chambers of Congress in a seismic midterm election, paving the way for a divided government.The Dow Jones Industrial Average (^DJI) rose 2.5%, or around 1,300 points, while the S&P 500 (^GSPC) climbed 1.5%. The Nasdaq Composite (^IXIC) traded up by 1.6% as Apple (AAPL) and Microsoft (MSFT) stocks touched record highs.Markets swiftly repriced a Democratic sweep of the House and Senate — and the potential for ballot measures and newly elected officials to restrict data center construction. Chip stocks, including Nvidia (NVDA) and Micron (MU), fell more than 1%. Meanwhile, other parts of the tech sector offset some of those losses with Apple (AAPL) and Microsoft (MSFT) each hitting all-time highs.Investors will also be watching for policy actions on housing and pharmaceuticals in the aftermath of the election.As Yahoo Finance's Jared Blikre pointed out on Tuesday, midterm elections have a history of shaping stock performance in the near term but don't tend to move markets much over the long term.On the economic front, ISM and S&P data showed that US services activity expanded at a slower pace in October as businesses continued to grapple with elevated costs. Private-sector hiring, meanwhile, continued to show strength in October as an ADP report indicated “pretty solid job growth.”Earnings continue to roll in. AMD (AMD) posted a Q3 earnings beat, while McDonald's (MCD) grappled with slowing same-store sales growth. Duolingo (DUOL) stock soared over 30% on strong user growth.