ASX 200 Soars Above 9,000 to Highest Since September as Democrats' Midterm Sweep Sparks Rally, NextDC Rockets

SYDNEY — Australian shares surged Thursday, with the benchmark index posting a gain of more than 2.6% and breaking back above 9,000 points, as a global rally sparked by Democrats' sweeping midterm victories in the United States spilled into local markets.

The S&P/ASX 200 closed up 2.61% at 9,065.1 points, while the broader All Ordinaries finished 2.8% higher at 9,205. The benchmark gained 230.6 points on the day.

The rally marked a sharp reversal from Wednesday's session. The ASX 200 had fallen 0.6% the previous day to 8,834.5 points. Australian markets had swung lower Wednesday after a steep drop in U.S. stock futures stoked concerns about Democrats winning control of Congress.

Strong start, stronger finish

The market opened sharply higher and kept climbing. In the opening minute, the ASX 200 rose 1.4%, or 123 points, to 8,957.9. The index later jumped above 9,000 to its highest level since early September.

The gains broadened through the afternoon. By 2:06 p.m., the index was up 174 points, or 1.97%, at 9,008 and on track for its best session since June 12. It finished well above that level.

Smaller companies and technology stocks outperformed. Shortly before the close, the Small Ordinaries was up 4.51%, the All Tech index 7.95% and the resources sector 5.53%.

Wall Street leads the way

The rally followed a strong session in New York. Global stocks rallied Wednesday after Democrats won control of both chambers of Congress, providing greater political clarity and reducing uncertainty that had weighed on markets. The Dow Jones Industrial Average was up 3% at 53,342 points, while the S&P 500 and Nasdaq each gained 1.7%, according to early-morning figures compiled by ABC News.

Investors welcomed the prospect of a divided government in Washington. "Markets hate uncertainty," said Clayton Allison, portfolio manager at Prime Capital Financial, adding that confirmation of the results, much of which had been priced in, brought certainty to markets.

NextDC leads the gainers

Data center operator NextDC was the standout performer. NextDC and Catalyst Metals were the top performers, rising 48.24% and 19.05%, respectively.

The surge came after two major industry players moved to build a stake. A trust jointly controlled by Goodman Group and U.S.-listed Digital Realty Trust sought to acquire up to 9.9% of NextDC's shares at A$9.50 each, a 45.5% premium to the previous close of A$6.53.

NextDC's board was cautious. The company said its board considered the purchase an "opportunistic move" by Goodman and Digital Realty. NextDC said the two companies told investors they did not currently intend to make a control proposal or takeover bid, though they reserved the right to do so in the future.

The move followed a rough stretch for the stock. NextDC shares had lost over 40% this year, with much of the decline in late October after the company paused future developments and cut its revenue forecasts.

The gains stood out against weakness in the U.S. data center sector. CoreWeave fell about 9% and Iren dropped roughly 11.2% on Wednesday, amid expectations of tighter scrutiny and possible restrictions on data center development following the Democratic wins.

Miners rally, energy slumps

Resources stocks posted big gains. The materials sector logged its best day since April 2025, rising 5.59%.

Precious metals helped. Spot gold rose 2.72% to $4,036.49 an ounce overnight.

Energy stocks moved sharply the other way as oil prices tumbled. Energy fell 4.5%, though it remains the best-performing sector this year, up 21.7%.

Oil prices fell more than 8% overnight to settle at their lowest in more than two months, as investors bet the shift in power in Washington could hasten the end of the U.S.-Israeli war with Iran. Brent futures settled 8.7% lower at $94.62 a barrel, while U.S. West Texas Intermediate crude fell 8.3% to $88.12.

NAB drags on financials

Banks were a weak spot after National Australia Bank's annual results. Financials fell 1.4% as NAB slid on its full-year profit miss.

NAB reported a 13.4% drop in full-year cash profit to $6.14 billion for the year ended Sept. 30, hurt by higher credit impairment charges and expenses and missing the consensus estimate of $6.33 billion. Credit impairment charges rose 86% to $1.55 billion, which the bank said included top-ups to provisions reflecting more challenging economic conditions, while it held its dividend at 85 cents a share.

The result came days after the Reserve Bank of Australia lifted borrowing costs. The RBA this week raised the cash rate for the fifth time in 2026 to an 18-year high of 4.85%.

David Jones in focus

Retail was also in the spotlight as a major department store chain faced an uncertain future. The ABC reported a decision on the fate of David Jones could be made within 24 hours, with its board set to decide whether the 188-year-old retailer will enter administration. Westfield owner Scentre Group said David Jones had only paid rent up until the end of September.

Currency and outlook

The local currency edged higher. The Australian dollar was up 0.11% at 70.12 U.S. cents.

Analysts cautioned that the U.S. election result may bring its own volatility. Commonwealth Bank senior geo-economics analyst Madison Cartwright said investors should expect less predictability, not more moderation, as President Donald Trump prefers to govern through executive action.

Some strategists expect Trump to focus more on trade. Rabobank senior U.S. strategist Philip Marey said a Democratic Congress could push Trump further into foreign and trade policy as domestic and fiscal policy becomes gridlocked.

Despite Thursday's gains, the index remains below its peak. The ASX 200 reached an all-time high of 9,296.70 in August 2026.