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US stocks sink as battle over 'fiscal cliff' looms

Published on Nov 15, 2012 6:11 AM
 
US stocks tumbled on Wednesday as President Barack Obama challenged Republicans to accept tax increases for the wealthy in a deal to avert the year-end fiscal cliff. -- PHOTO: REUTERS

NEW YORK (AFP) - US stocks tumbled on Wednesday as President Barack Obama challenged Republicans to accept tax increases for the wealthy in a deal to avert the year-end fiscal cliff.

After opening higher helped by Cisco Systems's strong earnings, share prices slid and then turned more sharply downward after Mr Obama laid out his terms for a deal in his first post-re-election news conference.

At the close the Dow Jones Industrial Average was down 184.92 points (1.45 per cent) at 12,571.26.

The broad-market S&P 500 lost 19.03 (1.38 per cent) at 1,355.50, while the tech-rich Nasdaq Composite gave up 37.08 (1.29 per cent) at 2,846.81.