Dow surges more than 1,500 points after midterms, but affordability concerns remain

WILMINGTON, NC (WWAY) — The Dow Jones Industrial Average posted its biggest one-day gain following a midterm election in more than four decades Wednesday, surging more than 1,500 points as Democrats regained control of both chambers of Congress.

The Dow climbed more than 3% less than 24 hours after the midterm elections. Still, despite the historic rally on Wall Street, concerns over the cost of living remain a major issue for voters across the country and in southeastern North Carolina.

UNCW economics professor Mouhcine Guettabi said significant one-day market gains are not unusual following elections. He said Wednesday’s rally likely reflects investors’ relief as much of the uncertainty surrounding the election results has been resolved.

“It’s abundantly clear that cost-of-living concerns weighed very, very heavily on the average Wilmingtonian and North Carolinian. And people at the national level as well,” Guettabi said.

Despite the market’s gains, affordability remains a top priority for Democrats, including Senate Minority Leader Chuck Schumer.

“We are going to work hard. We are going to work hard to drive costs down with the president or without him. Period,” Schumer said.

One of the first major races called Tuesday night was North Carolina’s U.S. Senate contest, where former Gov. Roy Cooper defeated Republican Michael Whatley.

Cooper campaigned on a promise to “make stuff cost less,” highlighting financial pressures facing families, small businesses and farmers.

“The small business owners watching their livelihoods disappear because of tariffs, the people who need healthcare and are terrified of seeing the federal government take it away. The farmers getting crushed by the cost of fertilizer and diesel because of this never ending war,” Cooper said.

However, Guettabi said the Dow’s significant gains may not reflect the economic realities facing many Americans, particularly those struggling to afford everyday necessities.

“If you’re not part of the portion of the population that’s lucky enough to have a 401k or to be retired already and you’re living paycheck to paycheck. The Dow increasing by 1500 points means nothing to you,” Guettabi said. “In fact, it potentially adds to the frustration of the fact that people keep telling you the economy is doing well, and yet you can barely afford a tank of gas.”

At the state level, Democrat Jessica Bichler, the senator-elect for North Carolina’s 7th Senate District, also made affordability a central focus of her campaign.

Bichler said addressing the rising costs of housing, health care, homeowners insurance and utilities will be among her priorities.

“Affordabilty is a real multi-faceted issue. I am looking at just affordabilty of healthcare, affordabilty of homeowners insurance and utilities and all the things that it takes to actually be able to stay in the home that we have. And really the separation between where our wages have landed and where our housing costs have landed,” Bichler said.

Locally, Democrats also gained control of the New Hanover County Board of Commissioners, potentially bringing changes to how the county approaches growth and affordability.

Guettabi said the shift in leadership could influence the county’s priorities, particularly when it comes to development and housing.

“Maybe priorities shift a little bit. Obviously the Wilmington region’s been trying to manage growth, right? And so that’s been the theme. And so potentially that shifts the conversation in terms of the speed of growth or tackling affordability through housing directly,” Guettabi said. “And so it’ll be interesting what are the priorities now that we have this shift in leadership.”

For people with retirement accounts, including 401(k) plans, financial experts generally recommend staying the course and avoiding sudden investment decisions based on a single day’s market activity.