Dow closes more than 600 points lower after indecisive midterms, crypto selloff; European markets close lower as investors await U.S. midterm results
Stocks were lower on Wednesday — following recent market gains — as results of the midterm elections provided no clear answers about who would control Congress yet. A crypto selloff also weighed on markets.
The Dow Jones Industrial Average fell 646.89 points, or about 1.95%, to 32,513.94. The decline was led by Disney, which fell 13.2% after the entertainment giant missed analysts’ estimates on the top and bottom lines. The S&P 500 shed 2.08% to 3,748.57, and the Nasdaq Composite slid 2.48% to 10,353.17.
Stocks fell to session lows during Wednesday afternoon as the price of bitcoin dropped to a new bear market low. The declines occurred after crypto exchange Binance said it’s backing out of plans to acquire its rival FTX, citing the results of a due diligence exam, as well as recent reports of mishandled customer funds and alleged U.S. agency investigations of FTX. The decision weighed on overall risk sentiment and dragged down the tech sector.
The pan-European Stoxx 600 was down 0.3% by the end of trading, with travel and leisure stocks shedding 2% as most sectors and all major bourses slid into the red. Utilities bucked the downward trend to add 0.7%, while health care stocks were up 0.6%.
Commerzbank reported its net profit dropped by 52% in the third quarter – an outcome which was better than expected. Shares of Commerzbank had dropped by 8.2% by mid-afternoon on the news that 2024 costs would be higher than expected. Germany’s second-biggest bank also maintained its full-year profit outlook, despite the country tackling soaring inflation and economic slowdown.
Adidas on Wednesday cut its full-year guidance on the back of the German sportswear giant’s termination of its partnership with Kanye West’s Yeezy brand. Adidas now projects a net income from continuing operations of around 250 million euros ($251.56 million), down from a target of around 500 million euros laid out on Oct. 20.
Source: CNBC, Investing.com