The Dow Jones Industrial Average is down nearly 300 points, a 2.20-percent decline over yesterday’s closing figure. Although the markets were up overnight, even after President Obama was declared the victor in the 2012 presidential election, they’ve since taken a deep dive. Part of this steep decline is due to the announcement out of Europe that Germany’s economy is slowing and part of the decline is due to the looming fiscal cliff issue.
The current CNNMoney.com headline reads, “Dow plunges below 13,000” with the subtitle, “Investors focus on how Obama plans to avoid the fiscal cliff following his re-election.” The fiscal cliff was here before the election and it is still an issue now, albeit with a lame duck Congress in session. Now that the election has been decided, investors and the corporate world are returning their focus to the fiscal cliff.
The Fox News article, "U-Turn: Stocks Tumble After U.S. Elections," doesn’t even mention the ongoing European financial crisis and its impact on Germany as part of the reason the Dow Jones is down this morning. However, author Adam Samson does state that the political divide has shifted investors' focus to the fiscal cliff issue.
NBC News is reporting that the European economy is having a direct and immediate impact on the stock market. “One of the immediate issues plaguing investors were predictions that the eurozone economy will inch along next year.” NBC also touches on the fiscal cliff, but clearly points out that the bad news out of Europe has negatively impacted the U.S. stock market and would have regardless of the election results.