“American and European markets fell this morning after the election of Democrat Barack Obama and Democratic gains in both the House and Senate,” Scott Mayerowitz reports for ABC News.
“With the closely watched presidential election over, the business world now braces itself for the new reality of a Democratic-controlled Washington. That likely means stronger oversight and regulation of the financial sector, a tax structure that is less friendly to companies, increased spending on entitlement programs and more labor-friendly policies,” Mayerowitz reports.
“The drops do not necessarily mean the markets are upset with Obama’s victory. It could just be investors taking profits after recent gains,” Mayerowitz reports.
“Wall Street had a lot invested in this election,” Mayerowitz reports. “The federal government has wide powers to regulate business in America — everything from the way stocks, bonds and other investments are traded to the way companies and their employees are taxed.”
“And the government’s role has become much more active as the financial crisis has spread,” Mayerowitz reports. “The new president is going to have to administer the $700 billion bailout, weigh a second economic stimulus package and look at what new regulations and oversight should or should not be imposed on Wall Street.”
Full article here.
Benjamin Pimentel reports for MarketWatch, “Technology stocks tumbled Wednesday morning as the broader market retreated following the previous day’s rally and as investors pondered the major economic challenges that President-elect Barack Obama will face.”
Pimentel reports, “The Nasdaq Composite Index [fell] 3.0%… Major tech players were in the red, including Apple Inc. (AAPL: $106.60, -4.39, -4.0%) , Hewlett-Packard (HPQ: $36.99, -1.25, -3.3%) and Microsoft Corp. (MSFT: $22.76, -0.77, -3.27%).”
Full article here.