The Market Now
The news that drives the U.S. and global markets.
After Obama Victory, the Market Falls (It Did in 2008, Too)
by Mark Gimein
If there’s anyone expecting that Barack Obama will patch up relations with Wall Street in his second term, the early signs from the markets are not promising. In morning trading U.S. markets fell sharply, with the S&P 500 down more than two percent and financial stocks among the biggest losers.
One interpretation of the decline is that, as this newsletter noted two days ago, an Obama victory almost guarantees a protracted and unpredictable budget negotiation. The split government, with the House still in the hands of the Republicans, means a standoff on taxes and spending cuts that could shut down the government and impact the U.S. credit rating.
That, at any rate, is one possible explanation. The other one is that investors on and off Wall Street don’t like Obama, period.