S&P, Dow, Nasdaq fall on uncertain election results, crypto worries; Disney slumps

U.S. stocks fell in choppy trading on Wednesday, as an uncertain outcome of the midterm elections and concerns over the cryptocurrency market weighed on investor sentiment. The elections did not lead to a Republican sweep , as the party looked set to gain control of the House, but the race for Congress was yet to be determined. The uncertainty reflected in the stock market as all three averages opened lower. "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," 22V Research said. The indices then plumbed session lows after a report that Binance was unlikely to go through with its proposed acquisition of the struggling FTX after seeing its financials. Bitcoin ( BTC-USD ) was down more than 14%. The tech-heavy Nasdaq Composite ( COMP.IND ) had fallen 1.14% to 10,495.08 points in morning trade, while the benchmark S&P 500 ( SP500 ) retreated 0.74% to 3,799.86 points. The blue-chip Dow was 0.73% lower at 32,919.38 points. Eight of the 11 S&P sectors were trading in the red, with Energy the top loser. Real Estate was the top gainer. A disappointing quarterly report sent shares of Disney tumbling more than 10% . The entertainment giant was the top S&P and Dow percentage loser. In other earnings related moves, AI-based lending platform Upstart slumped after a soft guidance. Meta Platforms gained more than 7% as Wall Street reacted positively to the Facebook parent's plans to cut jobs. Biotech Clovis Oncology cratered on bankruptcy concerns . Turning to rates, Treasury yields were slightly lower. The 10-year Treasury yield ( US10Y ) was down 3 basis point to 4.10%. The 2-year yield ( US2Y ) was down 3 basis point to 4.64%. The dollar index ( DXY ) was marginally higher by 0.4% at 110.01. Market participants will also be turning their attention from the election to inflation with CPI data on tap for Thursday. "A high CPI print could push terminal rate expectations higher and revive the debate about further financial condition tightening being needed. A weak print would increase expectations for an instrument pivot. Near-term vol is tied to unpredictable economic data," 22V said. "Longer-term, we expect volatility will trend lower given slowing growth and stable terminal rate expectations, but this week could be a speed bump."