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US stocks dive after Obama win; Dow loses 2.4%

Published on Nov 8, 2012 6:01 AM
 
A pedestrian walks past the New York Stock Exchange the day after Pres. Barack Obama was re-elected, Wednesday, Nov. 7, 2012 in New York. -- PHOTO: AP

NEW YORK (AFP) - US stocks tanked more than two per cent on Wednesday after President Barack Obama's re-election victory set up a tough battle with Republicans over the looming "fiscal cliff".

The Dow Jones Industrial Average tumbled 312.95 points (2.36 per cent) to finish at 12,932.73, closing below 13,000 for the first time since August.

The tech-rich Nasdaq Composite shed 74.64 (2.48 per cent) at 2,937.28. The S&P 500-stock index, a broad measure of the markets, skidded 33.86 (2.37 per cent) to 1,394.53.

"Despite the reelection of President Obama clearing up some of the political uncertainty in the US, stocks are selling off," said Charles Schwab & Co. analysts. The rout came "as attention turns to the looming automatic spending cuts and tax hikes known as the fiscal cliff, complicated by Congress remaining divided," they said.

 
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