Shares were lower on Wednesday – following recent market gains – as a result of the results Mid-term elections There are still no clear answers as to who controls Congress.
The Dow Jones industrial average fell 270 points, or about 0.8%. The S&P 500 fell 0.9%, and the Nasdaq Composite fell 1.2%.
Stocks have made three straight gains in an election Wall Street expects Republicans to win and block future tax and spending plans. The Dow rose 333 points on Tuesday, its third straight session of gains of more than 1%.
But Congress is clearly not in control. NBC News has yet to project control of the House of Representatives, with NBC estimating that Republicans could win 220 seats, which would be a narrow majority.
In one of the key races that could decide control of the Senate, Democrat John Fetterman defeated Republican Mehmet Oz For a key Senate seat in Pennsylvania, according to NBC News. Oz had the support of former President Donald Trump, who endorsed the candidates It saw spotty levels of success across the country.
Meanwhile, the Democratic Senate. A key Senate race in Georgia is between Raphael Warnock and Republican former NFL player Herschel Walker. December 6 will lead the runoff, according to Secretary of State Brad Raffensberger. An important Senate race in Nevada remains unresolved.
“Election results are still uncertain, but the red tide expected by models, investors and betting markets has not materialized and will add to already high volatility,” Dennis DeBasshere wrote in a note on Wednesday.
While the election has the market’s attention, investors may want to move now as the Federal Reserve raises interest rates to curb inflation, which could push the economy into recession.
The political landscape will “fascinate the Washington chatterbox, but for markets, will a recession develop, will the Fed end its tightening this winter, will a ceasefire in the Ukraine war and negotiations be possible?” wrote Greg Valliere, Chief US Policy Strategist at AGF Investments.
The market’s recent upswing occurred on the front end of a strong seasonal run. Historically, stocks rise after midterm elections and the policy clarity it brings, and the final two months of the year are considered a good time for investors.
Facebook Parent Shares Meta platforms Shares rose 3% after the social media giant announced it was laying off more than 11,000 workers. Founder and CEO Mark Zuckerberg said he was very optimistic about growth and now needed to overhaul the company.
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