Wall Street falls on little clarity after US elections, awaits inflation data

Wall Street closed sharply lower on Wednesday as Republican gains in the midterm elections looked more modest than some expected and investors nervously awaited U.S. inflation data that will provide clues about the strength of future gains. of interest rates.

Major indexes in New York extended declines as Treasury yields rose after a weak auction of 10-year notes.

The S&P 500 it lost 79.54 points, or 2.08%, to close at 3,748.57 units; Meanwhile he Nasdaq Composite dropped 263.02 points, or 2.48%, to 10,353.18 points. The Dow Jones Industrial Average it fell 646.89 points, or 1.95%, to 32,513.94 units.

The Republicans were still the favorites to win control of the House of Representativesbut races in key areas were too close, with a better-than-expected performance from Democrats dimming the prospect of a so-called “red wave.”

“What was really expected the most in the market was a red wave,” said Jay Hatfield, chief executive of Infrastructure Capital Management in New York. “I think we were in a unique situation where the more Republicans won, the better off the market would have been.”

In another factor that impacted confidence, the actions of Walt Disney Co. collapsed after the entertainment heavyweight reported further losses following heavy investment in streaming content.

the papers of Tesla Inc eased to a two-year low after Chief Executive Elon Musk revealed late Tuesday that he sold $3.95 billion worth of shares in the electric-car maker.

Wednesday’s drop in Wall Street ended a three-day rally in which the index S&P 500 had gained almost 3%.

With the outcome of the election still uncertain, investors turned their attention to October inflation data due out on Thursday, which could shed more light on whether the Federal Reserve could temper its aggressive stance on rate hikes. of interest.

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