Stock futures were lower — following recent market gains — as a result Mid-term elections There are still no clear answers as to who controls Congress.
Futures for the Dow Jones industrial average fell 196 points, or about 0.6%. S&P 500 futures were down 0.6% and Nasdaq 100 futures were down 0.7%.
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. Key Senate races in Georgia and Nevada remain 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 The premarket rose 3% after the social media giant announced it would lay 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.
One stock that has weighed on the future is Disney It fell more than 8% in early trade After the entertainment giant missed ratings on its top and bottom lines Fiscal fourth quarter.