Obama Reelected; Dow Jones Plummets

Obama Reelected; Dow Jones Plummets

The stock market plunged over 300 points in the wake of President Obama’s reelection, Politico reports.  The Dow Jones Industrial Average was down 313 points on Wednesday.

The dip was apparently a reaction to European markets which fell overnight.  Many investors are anxious about the country’s upcoming fiscal cliff negotiations, which could include massive spending cuts if a compromise is not reached.  The stock market dislikes uncertainty, but at least one thing is for certain: President Obama will have four more years in the White House.

“The reelection of President Obama removes one uncertainty,” wrote Paul Ashworth and Paul Dales of Capital Economics.  “But they are none the wiser about if, how, and when Congress will deal with the colossal tightening in fiscal policy.”

For more, read Politico.

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