U.S. stocks plunged Wednesday after incomplete election results left control of both houses of Congress still to be determined.

The Dow Jones Industrial Average fell 646.56 points, or 1.95%, to close at 32,514.27. The S&P 500 dropped 79.44 points, or 2.08%, to close at 3,748.67, and the tech-heavy Nasdaq Composite fell 263.03 points, or 2.48%, to close at 10,3353.17.

Many polls, bookmakers and analysts had forecast a "red wave" of Republican victories leading to control of Congress and a potentially gridlocked government preferred by Wall Street.

Instead, votes are still being counted in several key races that remain too close to call and Democrats did better than most predictions. Republicans are still expected to take control of the House but which party controls the Senate remains uncertain.

Meanwhile, the much-anticipated consumer price index report for October, a key inflation indicator, is scheduled for release Thursday before markets open. Analysts expect the report to show annual inflation at 7.9%, which would represent a decline from September's 8.2% rate of inflation.

Some of the stocks that saw sharp decline included Disney (DIS), which closed at $86.74, down $13.16, or 13.17%. Tesla's (TSLA) price of shares fell $13.71, or 7.17%, to close at $177.59

"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 president Dennis DeBusschere wrote in a Wednesday note to clients.