Dow Jones Declines 500 Points, After Investors Failed To Predict Midterm Elections Results

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Stocks plummeted on Wednesday shortly after decent market gains, after the midterm elections failed to provide clear answers about who would control Congress yet.

The Dow Jones Industrial Average shed 500 points. The S&P 500 plunged 1.6%, and the Nasdaq Composite dipped2.1%.

Stocks are erasing three-straight days of gains into the election, where Wall Street was expecting Republicans to gain ground and block any future tax and spending plans.

NBC News was not yet projecting control of the House of Representatives, with an NBC estimate suggesting Republicans could win 221 seats, which would be a narrow majority.

Democrat John Fetterman defeated Republican Mehmet Oz for the pivotal Senate seat in Pennsylvania, according to an NBC News projection, in one of the key races that could determine Senate control. Oz had the backing of former President Donald Trump, whose endorsed candidates saw spotty levels of success across the country.

“Election results are still uncertain, but the red wave that models, investors, and betting markets anticipated did not materialize, and near-term, that will add to already elevated volatility,” Dennis DeBusschere wrote in a Wednesday note.