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US stocks sink for 2nd day after election

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NEW YORK, Nov 8 AFP

November 09 2012, 08:16AM

US stocks have sunk to a second day of losses after President Barack Obama's re-election victory, trimming another one per cent after Wednesday's huge rout.

At the closing bell on Thursday the Dow Jones Industrial Average lost 120.95 points (0.94 per cent) to 12,811.78.

The broad-based S&P 500 fell 16.99 (1.22 per cent) to 1,377.54, while the tech-rich Nasdaq Composite lost 41.71 (1.42 per cent) at 2,895.58.

The fall added to the Dow's 313-point drop on Wednesday - the biggest one-day loss in a year - one day after Obama defeated Republican challenger Mitt Romney at the polls.

On the same day the S&P lost nearly 34 points and the Nasdaq nearly 75 points.

Traders said Wall Street, which had largely favoured Romney, was reacting more to the spectre of a new gruelling battle between Democrats and Republicans over the deficit and the looming "fiscal cliff" spending cuts and tax hikes.

"Markets did an about-face yesterday, as heavy selling crushed major indices by more than two per cent," said Tony Venosa of Schaeffer's Investment Research.

"The looming 'fiscal cliff' and eurozone economic issues have been brought to the forefront."