US stocks have surged as investors digest the Democrats’ victories in the midterm elections , lifted by hopes that Donald Trump ’s turbulent policymaking would be restrained and shaking off initial fears about the impact on growth in the world’s largest economy.

The Dow Jones rose close to 3%, its best day in over a year, while the tech-heavy Nasdaq and the benchmark S&P 500 gained about 1.5% each when markets closed on Wednesday afternoon, turning around overnight falls in US stock futures after the news that the Democratic party won control of the Senate and the House of Representatives.

The price of oil dropped sharply as traders assessed the impact of the Democrats’ win on the war in Iran. Brent crude, the global oil benchmark, fell below $100 a barrel for the first time since early October.

In a social media post on Wednesday afternoon, Trump took credit for the jump. “Stock Market just hit another Record High,” he wrote. “Your 401(k)s are through the roof.…