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tocks slid significantly Wednesday, with the Dow Jones Industrial Average plummeting nearly 650 points, as key midterm races were still being counted and cryptocurrency market fears shook investors out of a three-day rally, The Wall Street Journal reported Wednesday.
All three major indices fell, with the Dow falling 2%, the S&P 500 dropping 2.1% and the tech-heavy Nasdaq Composite Index plunging 2.5% by the end of the business day, the WSJ reported. Investors anticipated that the U.S. government would be gridlocked by Republicans gaining control of at least one branch of Congress, a status typically considered good for business, and though Republicans are still expected to gain control of the House of Representatives, their control is not expected to be as commanding as predicted.
Stocks made gains over the preceding three days partly on the assumption that a Republican-controlled House, and possibly Senate, would reduce government spending and regulations through gridlock, according to CNBC Tuesday.
“Markets don’t enjoy surprises, preferring predictability,” Chief Investment Officer Aoifinn Devitt at wealth management firm Moneta, told the WSJ. “This did not transpire to be the route expected.”