“Stocks remained deeply in the red in a post-election selloff Wednesday, triggered by worries over the looming ‘fiscal cliff’ and as fears over Europe’s economy reemerged,” JeeYeon Park reports for CNBC. “The Dow tumbled below 13,000, while the S&P 500 broke 1,400, both for the first time since early September. ‘It's now how quickly we can focus on the ‘fiscal cliff’ and coming up with a resolution-that’s certainly the next item on the agenda for the market,’ said Art Hogan, managing director of Lazard Capital Markets.”
“The Dow Jones Industrial Average briefly plunged more than 350 points in its biggest one-day loss in nearly a year, dragged heavily by Bank of America (-5.43%) and JPMorgan (-4.52%). The S&P 500 and the Nasdaq were also sharply lower. The CBOE Volatility Index, widely considered the best gauge of fear in the market, spiked above 19,” Park reports. “All key S&P sectors were firmly in the red, led by energy and financials.”
Park reports, “Apple [AAPL $562.435, -17.7645 (-3.06%)] fell more than 3 percent, pushing the tech giant down a jaw-dropping 20 percent from its all-time high of $705.07 in mid-September. The stock is now trading in bear market territory.”
“Ratings agency Fitch said Obama needs to move quickly to avoid the ‘fiscal cliff,’ adding that failure to address the issue would likely result in a downgrade in 2013,” Park reports. “Wall Street had favored Romney and the Republican ticket in part because it preferred their approach of retaining tax cuts, and making spending cuts. The Obama Administration favors raising taxes on the richest Americans, and also increasing capital gains and dividend taxes.”
Read more in the full article here.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]
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