Dow Plunges 300+ on Obama Win

Fiscal cliff worries loom

By Kevin Spak,  Newser Staff

Posted Nov 7, 2012 8:57 AM CST | Updated Nov 7, 2012 10:43 AM CST

(Newser) – Wall Street wasn't exactly cheering over President Obama's reelection. Stocks have been positively plunging all morning, with the Dow down 338 points, the S&P falling 37, and the Nasdaq dropping 79 as of 11:30am. With Washington's makeup essentially unchanged, investors were worried about the oncoming fiscal cliff, analysts tell The Street. "The biggest concern right now is the fear of a more deeply divided Congress," one investor says. "Given the track record of our lawmakers in raising the debt ceiling last year, there will be tremendous difficulty in getting a compromise."

The Dollar Index, meanwhile, rose to a two-month high, Bloomberg reports, as investors looked for a safe place to park their money should the cliff drama rattle markets. That movement was in part because the euro was plunging, after European Central Bank President Mario Draghi said that the credit crisis was affecting Germany.

In this Thursday, Sept. 20, 2012 file photo, trader Frederick Reimer works on the floor of the New York Stock Exchange.
In this Thursday, Sept. 20, 2012 file photo, trader Frederick Reimer works on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew, File)
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