Dow Jones sheds 532 points as election uncertainty undermines Wall Street

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NEW YORK, New York – Investors sold U.S. stocks off on Wednesday following the midterm elections, the results of which are not yet clear. An expected Red Wave of Republican support that would sweep the Repubmlican Party into the control of the House of Representatives and possibly the Senate, however, failed to materialize. While control of either could still go the Republican’s way, any win will be a slender one.

“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, CNBC reported as saying in a note to clients Wednesday.

The Nasdaq Composite did worst, percentage-wise, tumbling 231.25 points or 2.18 percent to 10,384.95.

The Dow Jones industrials shed 531.99 points or 1.60 percent to 32,628.84.

The Standard and Poor’s 50o0 let go 66.24 points or 1.73 percent to 3,761.87.

The U.S. dollar reversed gains of the previous day and was well in demand Wednesday. The euro slipped to 1.0002 by the New York close Wednesday. The British pound softened to 1.1343. The Japanese yen weakened to 146.63. The Swiss franc was sharply lower at 0.9857.

The Canadian dollar eased to 1.3534. The Australian dollar dived to 0.6423. The New Zealand dollar slid to 0.5877.

On overseas equity markets, the CASC 40 in Paris, France, slid 0.16 percent. The German Dax fell 0.17 percent. The FTSE 100 in London was off 0.14 percent.

The Nikkei 225 in Tokyo fell 156.07 points or 0.56 percent to 27,716.04.

The Australian All Ordinaries gained 37.30 points or 0.52 percent to 7,187.40.

In New Zealand, the S&P/NZX 50 declined 8.41 points or 0.08 percent to 11,143.48.

South Korea’s Kospi Composite increased 20.85 points or 0.87 percent to 2,419.89.

In Hong Kong, the Hang Seng retreated 198.79 points or 1.20 percent to 16,358.52.

China’s Shanghai Composite was off 16.33 points or 0.53 percent or 3,048.17.