Stock markets reacted nervously to President Barack Obama's victory Wednesday as the focus in Wall Street and Washington shifted from electoral politics to the the fight over the so-called "fiscal cliff".
All the major US markets fell before lunch with the Dow Jones Industrial Average down over 314 points (2.38%) by noon. Investors fear an impasse in Congress as politicians spar over a political solution to the expiration of Bush-era tax cuts and the automatic imposition of draconian spending cuts set to begin at the year end.
Greenhaus compared the situation to the political fight over raising the debt ceiling in 2011. While a compromise was eventually reached the fight led to an historic downgrade in US debt and triggered panic around the world.
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