[The Epoch Times, November 10, 2022](The Epoch Times reporter Takasugi compiled a report) After recent gains, the U.S. stock market fell sharply after the opening bell on Wednesday (November 9). The reason is that after the polls in the mid-term elections, the previously expected “red tide” of the Republican Party’s overwhelming victory has not swept through, and who will control Congress in the future has not yet been finalized.
The Dow Jones Industrial Average Index fell 503 points, or about 1.5%, during the session. Disney led the decline, with shares down more than 11%. Previously, the entertainment giant’s results missed analysts’ expectations. The S&P 500 Index fell 1.6% and the Nasdaq Composite slipped 2.1%.
Stocks fell to session lows in Wednesday afternoon trade. Bitcoin prices fell to their lowest levels in about two years, weighing on overall risk sentiment and dragging the tech sector lower.
U.S. stocks rose for three straight days ahead of midterm election day, as Wall Street expected Republicans to gain a clear advantage and to block Democrats’ future plans to raise taxes and boost spending.
But it remained unclear on Wednesday which party would control Congress after the vote. The major media have not made a final estimate of the control of the House of Representatives. Some election assessments suggest Republicans could win 221 seats. If so, it would be a situation in which the Republican Party has a narrow majority in Congress.
In a key race that could determine control of the U.S. Senate, Democrat John Fetterman defeated Republican Mehmet Oz in the race for the Pennsylvania Senate seat. According to Georgia Secretary of State Brad Raffensperger, Democratic Senator Raphael Warnock and Republican and former NFL player Herschel Walker Between the senatorial elections, there will be a second runoff on December 6. A key Senate election in Nevada is also pending.
Dennis DeBusschere, senior managing director of EvercoreISI, wrote in Wednesday’s report: “The outcome of the election remains uncertain, but it is clear that the ‘red wave’ expected by forecasting models, investors and the gaming market ‘ It didn’t happen. In the short term, this would add further volatility to an already elevated volatility.”
Investors are also deeply concerned about the future direction of inflation ahead of the consumer price index (CPI) report for October at 8:30 a.m. ET on Thursday (Nov. 10). Economists polled by Dow Jones expected the headline consumer price index to rise 7.9% from a year earlier, down slightly from September’s 8.2% increase.
Johan Grahn, vice president and head of ETF strategy at AllianzIM, commented: “Inflation is the Fed’s enemy number one, and if you see core CPI numbers climbing, I believe the market will react to that. One point showed a negative reaction.”
Responsible editor: Li Yuan#