Wall Street ends lower after midterm election, CPI in focus


  • Meta Platforms wins by decision to cut 11,000 jobs
  • Disney slumps as streaming unit losses mount

Nov. 9 (Reuters) – Wall Street ended sharply lower on Wednesday as Republican midterm gains appeared more modest than some had anticipated, with investors also focusing on upcoming inflation data that will provide clues about the severity of future rate hikes.

Major indices contributed to the declines as Treasury yields rose further following a poor 10-year bond auction by US Treasuries.

Republicans still preferred to gain control of the House of Representatives, but the key races were too close to mention, with a better-than-expected display by Democrats, raising the prospect of a so-called red wave of Republican gains. reduced.

“What was really expected more in the market was a red wave,” said Jay Hatfield, CEO of Infrastructure Capital Management in New York. “I think we were in a unique situation where the more the Republicans won, the better the market would have been. At least some stocks would have risen sharply, such as defense and energy stocks.”

Walt Disney Co (DIS.N) also hurt sentiment after heavyweight entertainment reported more losses from its push to streaming video.

Tesla Inc (TSLA.O) plunged to its lowest point in two years after Chief Executive Elon Musk revealed late on Tuesday that he had sold $3.95 billion worth of shares in the electric vehicle manufacturer, days after closing the $4 billion deal. 44 billion for Twitter Inc.

Clean energy stocks, which typically benefit under democratic leadership, rose, with the Invesco Solar ETF (TAN.P) leading the day.

Wednesday’s decline on Wall Street ended a three-day rally in which the S&P 500 was up nearly 3%.

With the election results still uncertain, investors turned their attention to October inflation data to be released Thursday, which could shed more light on whether the Fed could ease its aggressive stance on rate hikes.

“CPI is one of the most important inputs in terms of the inflation environment. It would be difficult to find many investors willing to take a big bet on[the report],” said Art Hogan, chief market strategist at B. Riley Financial.

Traders are divided on whether the Fed will raise interest rates by 50 basis points or 75 basis points in December, according to CME Group’s Fedwatch tool.

According to preliminary data, the S&P 500 (.SPX) lost 78.91 points, or 2.06%, to finish at 3,749.20 points, while the Nasdaq Composite (.IXIC) lost 263.02 points, or 2.46%, to 10,354. 54. The Dow Jones Industrial Average (.DJI) fell 644.15 points, or 1.94%, to 32,516.68.

S&P 500 components

Investors were also concerned about the health of major cryptocurrency exchange FTX, with them questioning whether a rescue deal from bigger rival Binance would be forthcoming, while the company was reportedly part of a regulatory investigation.

Meta Platforms Inc (META.O) took a leap after its Facebook mom said it was cutting 13% of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year.

Wendy’s Co (WEN.O) recovered after the hamburger chain reported quarterly sales and profits that exceeded analyst estimates.

Reporting by Noel Randewich in Oakland, California. Additional reporting by Devik Jain, Bansari Mayur Kamdar and Amruta Khandekar in Bengaluru Editing by Arun Koyyur and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.


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