The misery inflicted by superstorm Sandy intensified yesterday as millions along the US East Coast faced life without power or transport for days to come.

It is beyond anything I thought I’d ever see. It is a devastating sight right now

In hardest-hit New York, huge swathes of the city remained dark and nearly deserted.

At least 35 people were killed across seven states by the storm that made landfall in New Jersey and cut power to around 7.5 million people.

It also managed to put the presidential campaign on hold just one week before election day.

New York’s financial district was closed for a second day but is expected to reopen today.

The storm caused the worst damage in the 108-year history of the city’s subway system and there was no indication of when the largest US transit network would be rolling again.

The full extent of the damage in neighbouring New Jersey was being revealed as morning arrived. Emergency teams fanned out to rescue hundreds.

Governor Chris Christie said seaside rail lines had been washed away; there was no safe place on the state’s barrier islands for him to land. Parts of the coast were still under water.

“It is beyond anything I thought I’d ever see,” he said. “It is a devastating sight right now.”

The death toll from Sandy in the US included several killed by falling trees. Sandy also killed 69 people in the Caribbean before heading up the Eastern Seaboard.

Airlines cancelled more than 12,000 flights. New York’s three major airports remained closed.

President Barack Obama declared a major disaster in New York and Long Island, making federal funding available to residents of the area. He also suspended campaigning for a third day.

“This was a devastating storm, maybe the worst that we have ever experienced,” New York mayor Michael Bloomberg said.

Trading at the New York Stock Exchange was cancelled again after the storm sent a record 13ft surge of water over its seawalls and into low-lying streets. The water flooded tunnels, subway stations and the electrical system that powers Wall Street and sent hospital patients and tourists rushing for safety.

Skyscrapers swayed and creaked in winds that partially toppled a crane 74 stories up. A large tanker ship ran aground on the city’s Staten Island.

A fire raged in a city neighbourhood morning near the Atlantic Ocean, with 80 to 100 homes destroyed but no deaths reported.

In New Jersey, where the superstorm first hit land, a huge swell of water swept over the small town of Moonachie, and authorities struggled to rescue about 800 people, some of them living in a trailer park.

Police and fire officials used boats to try to reach the stranded.

The massive storm reached well into the Midwest with heavy rain and snow. Chicago officials warned residents to stay away from the Lake Michigan shore as the city prepared for winds of up to 60 mph and waves exceeding 24 feet well into Wednesday.

Just before it made landfall, forecasters stripped Sandy of hurricane status, but the distinction was purely technical, based on its shape and internal temperature.

It still packed hurricane-force winds.

While the hurricane’s 90 mph winds registered as only a Category 1 on a scale of five, it packed “astoundingly low” barometric pressure, giving it terrific energy to push water inland, said Kerry Emanuel, a professor of meteorology.

New York’s Tisch Hospital was forced to evacuate 200 patients after its backup generator failed. Patients – including 20 babies from the neonatal intensive care unit who were on battery-powered respirators – had to be carried down stairs to dozens of ambulances waiting to take them to other hospitals.

Fourteen crewmembers of the tall ship HMS Bounty were rescued after the boat was engulfed by waves, but the US Coast Guard were still looking for its missing captain after recovering the body of one woman on board.

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