Wall Street staged a strong comeback following the U.S. midterm elections, with the S&P 500 joining other major indexes in a broad market rally. Investors welcomed the prospect of divided government, which may reduce the likelihood of sweeping policy changes. Meanwhile, declining oil prices helped ease inflation concerns, further improving market sentiment.

Encouragingly, the S&P 500’s gains extended beyond technology stocks, as consumer discretionary, communication services and financial companies attracted buying interest. Resilient private-sector hiring also reinforced confidence in the economy. Historically, U.S. equities have performed well following midterm elections, providing grounds for a cautiously…