Wall Street closed in the red after the midterm elections

The Republicans were less successful than expected in the midterm elections and that's why Wall Street ended the trading in a sharp decrease. Investors are waiting for the inflation data that will give an idea about the possible interest rate increases in the future.

The advantage in getting control in the House of Representatives was with the Republicans, not the Democrats. However, the results of the competition show that the Democrats are not losing their position, which makes it less possible for a Republican red wave to appear.

Jay Hatfield, CEO of Infrastructure Capital Management in New York, said that all market participants most expected a red wave. In his opinion, this was an exceptional case, because the market would get better with the growing success of the Republicans. He noted that at least some stocks were rising strongly, such as defense and energy companies. At this point, though, it is still hard to make a conclusion about the election's outcome.