Indices plunge as uncertainty grows on who is likely to win the race for Congress and oil falls another 3%. Wiping out all of last week's gains.

The US indices plummeted in today’s session. Uncertainty grew on who is likely to win the race to control Congress in an unexpectedly tight US midterm election. It all begins to tear just a day ahead of inflation data that could offer insights into the Fed’s monetary policy measures.

The Dow Jones fell 1.8%, the Nasdaq slumped 2.4% and the S&P dropped 1.9%.

Many have predicted a so-called ‘red wave’ with the Republicans in play, although the GOP is still expected to win a narrow majority in the House, which could result in a divided government. The battle for the Senate is close after Democrats managed better than anticipated.

In energy, oil prices fell 3% for a second consecutive day to show a net loss of 7% on the week. This has now erased all of last week’s gain.

Crude inventories shot up by 3.925 million barrels week on week as reported by the EIA. Market analysts had an estimate of 1.36 million barrels.

The New York WTI traded down $3.08 to $85.83 per barrel, and the London Brent traded down $2.71 to $92.65 a barrel.

In corporate news, Roblox plunged 20% after the video game company reported a bigger-than-expected loss in quarterly earnings.

Continuing from yesterday, Walt Disney fell more than 11% after reporting results lower than Wall Street expectations. The media giant warned about slowing growth for its Disney+ streaming platform.

In tech, Mark Zuckerberg’s Meta bounced in the opposite direction, rising more than 5%. The tech giant released plans to cut more than 11,000 jobs, which was much appreciated by Wall Street, especially after recent frustrations regarding the company pursuing the metaverse.

(Sources: investing.com, reuters.com)