Dow sinks 600 points amid post-election decline while cryptos extend losses after Binance nixes FTX deal

• US stocks tumbled Wednesday as Republicans appeared to underperform Wall Street's views for the midterm elections.
• Cryptos faced more downward pressure as Binance confirmed it will walk away from a deal to take over FTX.

US stocks closed sharply lower on Wednesday as markets contended with more midterm election results and broader turmoil in cryptos.

Control of Congress remains too close to call, and although Republicans are still favored to take a majority in the House of Representatives, they appeared to underperform Wall Street's expectations.

Meanwhile, cryptocurrencies continued to sell off as Binance confirmed it will walk away from its proposed acquisition of FTX, one day after signing a non-binding letter of intent. FTX is also facing federal probes into how it handled client funds.

Investors are also looking ahead to Thursday's consumer price index report, which could offer clues on how hawkish the Fed will be. According to JPMorgan, a big miss or beat could move the S&P 500 up or down as much as 6%.

Here's where US indexes stood at the 4:30 p.m. closing bell on Wednesday:

• S&P 500: 3,748.59, down 2.08%

• Dow Jones Industrial Average: 32,513.94, down 1.95% (646.89 points)

• Nasdaq Composite: 10,353.17, down 2.48%

Here's what else is happening today:

• Retail investors are taking advantage of the FTX fallout and buying the dip in crypto-linked stocks.
• Tesla tumbled below Warren Buffett's Berkshire Hathaway in market value, as investors continue to swap out riskier stocks for safer options.
• Mortgage applications hit their lowest level since 1997 as the 30-year fixed rate climbed to 7.14%.

In commodities, bonds, and crypto:

• West Texas Intermediate crude fell 3.42% to $85.87 per barrel. Brent crude, the international benchmark, slipped 2.98% to $92.50
• Gold declined 0.31% to $1,707.17 per ounce.
• The 10-year Treasury yield fell 1.9 basis points to 4.109%.
• Bitcoin plunged 11% to $16,200.