U.S. stocks rallied on Wednesday after Democrats won control of both the House and Senate in the midterm elections, with investors welcoming a more divided government and a conciliatory tone from President Trump. The State Street SPDR S&P Homebuilders ETF (XHB) closed up 5.4% at its highest level in more than two months, while Home Depot rose 6.5% and Lowe's gained 7.5%. Democrats have not yet outlined specific housing policies, and the article says meaningful policy would take months to emerge from Congress. Interest rates are seen as the key factor: the 10-year Treasury yield fell 1.2% to 4.89%, and easing inflation could bring homeowners back to delayed renovation projects. Market sentiment may keep these stocks elevated, but the businesses need supportive conditions to recover.
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Original headline: Here’s What Democrats Taking Back the House and Senate Could Mean for Housing Stocks Like Home Depot and Lowe’s
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