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Dow Tumbles Almost 500

Markets move past election euphoria to sober economic reality

By Nick McMaster, Newser Staff

Posted Nov 5, 2008 3:34 PM CST

(Newser) – Today's Obama buzz apparently didn't make it to Wall Street, where the markets plunged as dismal economic reports reminded investors of the challenges facing US business, the Wall Street Journal reports. Stocks gave up all of their Election Day gains and continued to fall as the Dow lost 486.01 to close at 9,139.27. The Nasdaq fell 98.48 to close at 1,681.64, and the S&P 500 fell 52.98, settling at 952.77.

The Institute for Supply Management said service-sector economic activity contracted steeply in October, with its index down to 44.4%, from 50.2% the previous month. While stocks rallied in expectation of an Obama victory yesterday, “now we're down to business and the market is going to wait until he talks about an economic plan,” said one economist.

[Images (2)]

[Quotes (1)]

Four Barclays Capital specialists consult monitors on the trading on the floor of the New York Stock Exchange today. (AP Photo)

Specialist George Moerler III works on the floor of the New York Stock Exchange today. (AP Photo)

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The textbook says that when you think things are getting worse, you sell stocks, sell the dollar, and buy bonds. That's what we're seeing today. - Bill King, chief market strategist for
M. Ramsey King Securities

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Dow Tumbles Almost 500