NEW YORK (CNNMoney) -- U.S. stocks fell sharply at the open Wednesday, as investors focused on how President Obama plans to avoid the fiscal cliff after he won re-election Tuesday night.
Worries about the European economy also resurfaced, putting more pressure on global markets.
The Dow Jones industrial average fell more than 200 points after the open, a more than 1.3% drop. The Nasdaq and S&P 500 also slid more than 1.3%.
Wall Street had been overwhelmingly in favor of Mitt Romney, and considered him to the more business-friendly candidate.
Investor attention is already turning to what Tuesday's results mean for the looming fiscal cliff, the market's biggest headwind, according to market strategists and money managers surveyed by CNNMoney.
If lawmakers fail to address the simultaneous onset of tax hikes and spending cuts that will be triggered on Jan. 1, they risk throwing the U.S. economy back into a recession and drive unemployment up even higher.
Related: Up next for Obama - the fiscal cliff
As investors weighed Obama's win and what it means for regulation, shares of financial companies and energy producers fell sharply.
Banking giants Bank of America (BAC, Fortune 500), Morgan Stanley (MS, Fortune 500) and Goldman Sachs (GS, Fortune 500) shares fell more than 3%. JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) also fell sharply.
Additionally, coal producer Alpha Natural Resources (ANR, Fortune 500) sank 9%, while Peabody Energy (BTU, Fortune 500), James River Coal Co (JRCC), CONSOL Energy (CNX, Fortune 500) and Walter Energy (WLT) were also down. Oil companies Exxon Mobil (XOM, Fortune 500), Chevron (CVX, Fortune 500), and Halliburton (HAL, Fortune 500) also fell.
But hospital stocks HCA (HCA, Fortune 500) and Community Health Systems (CYH, Fortune 500) were big gainers, as Obama's win means the president's health care reform legislation is here to stay.
In Europe, European Central Bank president Mario Draghi warned that the region's debt problems are starting to take their toll on the economy in Germany, which has so far been relatively insulated.
The European Commission issued a report forecasting a quarter percentage decline in economic activity in the European Union this year, and subdued growth in 2013.
Following a morning rally, European stocks sold off in afternoon trading. Britain's FTSE 100 slipped 0.4% while the DAX in Germany and France's CAC 40 declined 1%.
Asian markets shaved morning losses after Obama's win was declared, as investors bet that the Federal Reserve is likely to stick with its current monetary policy in the near term. The Shanghai Composite and Japan's Nikkei finished little changed, while the Hang Seng in Hong Kong rose 0.7%.
A victory by Romney, who had been highly critical of Fed chairman Ben Bernanke, could have resulted in more uncertainty about the future leadership of the Fed and whether the central bank would be tougher on inflation. The Fed's low interest rates and bond buying programs have largely been credited for boosting the market during the past three years.
The dollar initially eased against the major world currencies but reversed course. The dollar rose 0.5% against the euro and 0.1% versus the British pound. The dollar declined against the Japanese yen.
Fear & Greed Index
Investors also continued to eye corporate news. CNNMoney parent Time Warner (TWX, Fortune 500) shares rose after the media company posted a higher-than-expected profit for the third quarter thanks to strength in its cable networks.
Shares of Macy's (M, Fortune 500) slipped even after the retailed topped earnings expectations and boosted its guidance for the year.
News Corp. (NWSA, Fortune 500) shares gained ground after the media giant reported solid quarterly results late Tuesday.
On Wednesday afternoon, the Federal Reserve will release data on consumer credit for September, which is expected to have expanded by $10.6 billion, according to a survey of analysts by Briefing.com.
U.S. stocks finished higher Tuesday.
Commodities: Oil for December delivery fell $2.40 to $86.31 a barrel.
Gold futures for December delivery gained $5.50 to $1,720.50 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury edged higher, pushing the yield down to 1.63% from 1.74% late Tuesday. 
First Published: November 7, 2012: 9:49 AM ET
Anda sedang membaca artikel tentang
Stocks slump after election
Dengan url
http://kasiatbuatsehat.blogspot.com/2012/11/stocks-slump-after-election.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Stocks slump after election
namun jangan lupa untuk meletakkan link
sebagai sumbernya
0 komentar:
Posting Komentar