Stock Market in Two Day Freefall After Obama Victory

The mood of the market has certainly switched,” said J.J. Kinahan, chief derivatives strategist at TD Ameritrade,

Really, what could have done that?

The Dow Jones closed below 13,000 for the first time in three months. It’s been in freefall for two days and the declines are leaning political.

The Nasdaq and S&P 500 also both sank more than 2%, clocking their worst drop since early June. Coal and for-profit education stocks led the declines on both indexes.

The S&P 500, considered one of the best barometers of U.S. equities, tumbled 2.4% on Wednesday in its worst day on a percent basis since June. The losses added up in late trading on Thursday as well, with the S&P sinking 1.2%.

That’s just the news for yesterday. This is the news from the day before.

The Dow Jones industrial average is down 2 percent, putting it on course for one of its worst one-day drops following a U.S. presidential election. The biggest, in 2008, came in the midst of the financial crisis on the day after President Barack Obama won his first term.

And the news isn’t looking good.

Slowing corporate profits, the remnants of Superstorm Sandy and the ramifications of the “fiscal cliff” in Washington are expected to result in at least two quarters of slow or no growth

Strategas earlier this week said it expects a recession early in 2013, and University of Maryland economist Peter Morici said that “the President and Congress will not be able to raise taxes — be those on the wealthiest of the wealthy or anyone else — and cut spending without risking a second recession, deeper and more painful than the Great Recession.”

I know. Let’s borrow more money from China. That plan has been working great until now. But somebody’s gotta pay for all the Obamaphones.

  • SuicidePrevention

    The S&P500 was at about 930 the day before Obama was elected in 2008.
    It bottomed at about 680 in March 2009.
    Now it's at 1381.
    Dan, the stock market has always been volatile like a manic-depressive.
    Market commentators habitually attribute modest moves to specific
    news items, because they're under pressure to churn out verbiage.
    Sound familiar?

    • Daniel Greenfield

      Market experts are saying some of the same things. Even the media is attributing this to uncertainty over Obama.

      • amused

        You're right there Daniel , and THAT is also based on the LIKLEHOOD of Congress coming to some sort of agreement approaching the deadline , just like last year …and since there's been virtually no changes in the composure of the House and Senate ,it really makes no difference whether the President is Rep. or Dem . Last year the recommendations of the non-partisan Committe composed of Republicans and Democrats [ Ryan being on that commitee ] was Rejected by Republicans , no doubt influenced by Tea Party votes . Since when did the notion of compromise get removed from the legislative process in this country ? So it took 4 years to realize that an attitude of " my way or the highway " just ain't gonna work .Just remember Republican , Democrats, and millions of Americans ,as well as Tea Party members all have portfoilio's too . Loss of jobs from going over the edge will definitely affect jobs in everyones constituencies .I consider Boehner to be a good man , but his own Party broke ranks as did Obama's on that bipartisan Commitee's compromise .

  • SuicidePrevention

    Exactly my point. The real experts don't work in the news media. And even if you could identify a real expert, half of what they say to the media is merely "talking their book." At times they may be be making optimistic noises because they want to unload their shares at the highest possible price. At other times they issue dire warnings because they want to create for themselves the opportunity to buy at a low price.

  • amused

    The "experts " aint here neither at FPM . "Free Fall " ? Really ? You dont say …..the market dopped 3 times before , equal to or worse since 11/01/11 …what no election ? Buy Low /sell high atleast you get it .

  • κατεργάζομαι


  • amused

    Indeed , just like the cost of my ammunition went up 20% after another TEABAG rumor that Obama was gonna takeaway all my guns . S&W was laughing all the way to the bank . Nothing like unfounded paranoia to fuel gun sales ….it's primal man . Gun and Ammo prices never eally came down since . You may have to purchase your next firearm on the lay-away plan .

    • Mary Sue

      Obama is more anti gun than Chucky Schumer. When he's going around promising Sarah Brady of Handgun Control Inc that he's going to do something about it (and then we find out about Fast and Furious), you know that crap is in the works. But he's more stealthy and devious than Schumer.

      • amused

        I been hearing that crap for 4 years now and Obama has not introduce ANY gun legislation . So because he didn't hold true to paranoid rumors , now it's time to start them over again ?
        Fast and Furious was a blown ATF operation , gee is that unusual ? I guess you forgot Waco already huh ? Hand gun control is up to the States ie: Mass. NY . Automatic weapons control is in the domain of the Federal Government . I guess that you "living in Canada " …wink ,wink – you are not aware of gun laws or the lack there o ,in our border states especially . And as big a political football Fast and Furious was , it only accounted for a miniscule % of the weapons that go south to mexico completely UNDOCUMENTED . I suggest you get informed rather than falling victim to more RUMORS .

  • amused

    BTW , extend that graph a bit to the left to Jan 2012 any yoiu'll see a bigger "free fall . "

  • wsg

    FYI – McGraw – Hill is in for another round of job cuts before 2012 ends

  • amused

    …yea and that couldn't be attributed to the explosion of Kindle , right ? Profits of Publishing firms are directly tied to revenues from book sales …..but you knew that right ?