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Stock Market Today Stocks Snap Win Streak as Midterm Results Roll In

A continued selloff in cryptocurrencies and crypto-related stocks put pressure on the broader market today, too. (opens in new tab) (opens in new tab) (opens in new tab) Newsletter sign up Newsletter (Image credit: Getty Images) By Karee Venema published 9 November 2022 Stocks closed sharply lower Wednesday as several key midterm election races remained undecided. While it looks increasingly likely that Republicans will gain control of the House of Representatives, the Senate remains too close to call. Markets hate uncertainty, but the historical prognosis for stocks following a midterm has been positive – we'll explain more below.

Is the Stock Market Open on Veterans Day 2022? Another headwind for stocks today was the continued selloff in cryptocurrencies and crypto-related stocks following Tuesday's news that crypto exchange Binance bought the non-U.S. assets of rival FTX. Bitcoin tumbled 11.0% to $16,190 (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.). Among equities, crypto exchange Coinbase Global (COIN (opens in new tab)) fell 9.5%, while online trading app Robinhood Markets (HOOD (opens in new tab)) slumped 13.8%. This put pressure on the Nasdaq Composite, with the tech-heavy index falling 2.5% to 10,353. The broader S&P 500 Index (-2.1% to 3,748) and the blue-chip Dow Jones Industrial Average (-2.0% to 32,513) suffered significant losses, as well. Today's drop had the major market indexes snapping a three-day win streak.

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Profit and prosper with the best of Kiplinger's expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of Kiplinger's expert advice - straight to your e-mail. Sign up Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice. Also on Wall Street's radar is tomorrow morning's consumer price index (CPI) for October. José Torres, senior economist at Interactive Brokers, is expecting the headline reading to be up 8.1% year-over-year, and core CPI, which excludes volatile food and energy prices, to be 6.6% higher. Another hot reading could push the Fed to keep monetary policy tight, Torres says, which would in turn pressure stocks.

Analysts Say Disney Remains a Buy After Earnings

Still, long-term investors shouldn't be overly concerned about this latest round of market volatility. "History has shown that during midterm election years, the equity markets tend to struggle heading into the fourth quarter, before rallying," says John Lynch, chief investment officer for Comerica Wealth Management.

Where to Put Safe Money Today Another encouraging data point from Lynch: "Since 1950, the average drawdown for the S&P 500 has been 17.0% in midterm election years. However, after reaching its trough, in the subsequent 12-month period, the Index has recovered by up to one-third on average." The S&P 500 has already exceeded this average drawdown in 2022, off 21.3% for the year-to-date, and while more losses could come, history shows that a significant rebound will eventually occur. This, says Lynch, underscores the importance for investors "not to be deterred by midterm election year volatility," as well as his "belief that the best course of action is to stay the course with long-term investment plan and remember the importance of 'time in' vs. 'timing' the market." And the good news for investors is that following the stunning losses the equities market has seen this year, many high-quality stocks are trading at bargain-basement prices right now. Take Facebook parent Meta Platforms (META), for instance, with the former mega-cap tech stock down nearly 70% since the start of the year. Walt Disney (DIS (opens in new tab)) is another one. The Dow Jones stock fell 13.2% today after a dismal earnings report, but analysts agree DIS is still a resounding Buy. Here, we explain why.

What is the Metaverse? Explore More Stock Watch Markets Stock Market Today Coinbase Global (COIN) Robinhood (HOOD) Walt Disney (DIS) Karee VenemaContributing Editor, Kiplinger.comWith over a decade of experience writing about the stock market, Karee Venema is an investing editor and options expert at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis. Latest New Target Stores Will Be Huge The discount retailer will expand its footprint and design with more stores and remodels that will reflect the new concept. By Bob Niedt • Published 11 November 22 Student Loan Forgiveness Blocked For Now Due to Court Ruling For now, a Texas federal court ruling has caused the Biden administration to block new applications for student loan forgiveness. By Kelley R. Taylor • Published 11 November 22 You might also like Kiplinger's Weekly Earnings Calendar (Nov. 14-18) stocks Check out our earnings calendar for the upcoming week. By Karee Venema • Published 11 November 22 Stock Market Today: Stocks Lift Off After Encouraging Inflation Report The major market indexes rallied to their best day in two years after data showed inflation slowed in October. By Karee Venema • Published 10 November 22 Is Disney Stock Still a Buy After Disappointing Earnings? Disney stock is selling off after its latest earnings report, but analysts are still bullish on the media giant. By Dan Burrows • Published 9 November 22 Stock Market Today: Huge Crypto Deal Shakes Up Nasdaq News that crypto exchange Binance will buy its rival sent Bitcoin and several tech stocks into a tailspin. By Karee Venema • Published 8 November 22 Is Disney Stock a Buy Ahead of Earnings? Disney stock has struggled in 2022, but analysts see plenty of upside for the blue-chip media giant. By Dan Burrows • Last updated 8 November 22 Stock Market Today: Stocks Rise Ahead of Midterms The Dow outperformed thanks to a major M&A-related boost for drugstore chain Walgreens Boots Alliance. By Karee Venema • Published 7 November 22 Stock Market Today: Stocks Swing Wildly After October Jobs Data The major indexes ended with their first win of the week thanks to the latest jobs report. By Karee Venema • Published 4 November 22 Stock Market Today: Stocks Fall Again as Fed Hangover Persists The major market indexes notched a fourth straight loss as Powell's rate-hike warning kept investor sentiment in check. By Karee Venema • Published 3 November 22 View More ▸ kiplinger About Us (opens in new tab) Terms and Conditions (opens in new tab) Privacy Policy (opens in new tab) Cookie Policy (opens in new tab) Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site.
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