New York, Nov. 4 -- US stock markets rallied sharply on Wednesday after Democrats registered commanding victories in key races across the country in the midterm elections, with the Dow Jones Industrial Average jumping 1,150 points at the opening bell, while the Nasdaq Composite and S&P 500 also posted strong gains.

The rally marked a sharp reversal from overnight trading, when Nasdaq 100 futures plunged as much as 2.5 per cent as the earliest election results began emerging on Tuesday night.

However, market sentiment shifted dramatically by Wednesday morning as the results pointed towards Democrats securing control of both chambers of the US Congress.

The technology-heavy Nasdaq Composite opened 1.5 per cent higher, while the broader S...