Morning Business Report: Stocks surge after midterm elections as defense shares fall and mortgage demand declines

Stocks surged Wednesday following decisive Democratic victories in the midterm elections, as investors responded to reduced political uncertainty on Wall Street.

(LILAMAX)- Stocks surged Wednesday following decisive Democratic victories in the midterm elections, as investors responded to reduced political uncertainty on Wall Street.

The Dow Jones Industrial Average climbed 3%, gaining 1,569 points.Shares of several companies that have been heavily affected by tariffs posted strong gains, including Constellation Brands, Boston Beer and Brown-Forman.Retailers Walmart and Target also rallied, along with automakers General Motors and Ford.

Despite the broader market rally, U.S. defense stocks fell Wednesday as investors considered how Democratic control of Congress could affect Pentagon spending.Lockheed Martin shares dropped 6.5%, while RTX declined more than 4% in morning trading.L3Harris Technologies fell nearly 8%, while General Dynamics and Northrop Grumman recorded losses ranging from 3% to 5%.The declines reflected concerns that defense contractors could face increased scrutiny of federal military spending plans.

Meanwhile, mortgage demand continued to decline last week following a brief increase the previous week, despite a slight drop in interest rates.

The average rate for a 30-year fixed mortgage fell to 7.3%, down from 7.37% the previous week.Refinancing demand remained essentially unchanged for the week but was 60% lower than during the same period a year earlier.

A new survey of 2,000 Americans also found that 59% admit to keeping at least one financial secret.

The TD Bank and Talker Research survey found that 11% maintain a separate bank account without their partner’s knowledge.One in five respondents said they secretly have a poor credit score, while 16% acknowledged hiding significant credit card debt. Another 14% admitted concealing gambling habits from loved ones.

The survey also found that 30% of respondents have hidden a purchase or financial decision from a spouse, partner or family member.