Stocks Plunge in Obama Reelection Aftermath
US stocks opened sharply lower Wednesday following the re-election of President Barack Obama.
Within minutes of the opening bell, the Dow Jones industrial average was down nearly 200 points, USA Today informs.
The broader Standard & Poor's 500 index lost 21 points, or 1.5%, to 1,407. The Nasdaq was down 41 points, or 1.4%, to 2,971.
Investors' initial reaction is decidedly negative over the defeat of GOP candidate Mitt Romney who is considered more business-friendly than his opponent.
Investors also believe that the continued gridlock in Congress that will make it tough for lawmakers to avert a fiscal policy crisis by year-end.
- » CoE: Grey Economy Results in Losses of EUR 40 B per year in Romania
- » Slovenia Re-Launches Privatization of 15 State-Owned Companies
- » Russia Forced to Pay USD 50 B to Former Yukos Owners
- » Romania, US to Launch Observation Flights over Russia, Belarus
- » Greek Civil Servants to Stage Strike in Athens
- » Hamas Agrees to New 24-Hour Ceasefire in Gaza
Investors pulled back sharply following President Barack Obama's reelection and rising worries about the upcoming fiscal fight in Congress.
The Dow Jones Industrial Average shed 232 points, or 1.8%, to 13014 in Wednesday morning trade. That was more than enough to erase the previous day's strong advance, and came after volatile movements in the overnight stock futures market.
Traders handle last minute trade orders on the floor of the New York Stock Exchange just before the closing bell on Tuesday.
The Standard & Poor's 500-stock index lost 25 points, or 1.8%, to 1403 and the Nasdaq Composite declined 53 points, or 1.8%, to 2959
AND THE WORST IS YET TO COME!!!