Exuberance over, back to depressing realities.
AP: Analysts said the market expected an Obama victory, and Wednesday’s selling was part of a trading pattern known as “buy on the rumour, sell on the news.” Investors were also cashing in some of their gains from Tuesday’s big rally, which sent the Dow Jones industrials up more than 300 points on expectations that battered stocks would enjoy a traditional yearend rally.
Analysts say investors are focused on the economy rather than the election. They’re awaiting a report that’s expected to show that the service sector, like the manufacturing sector, shrank in October.
The Dow is down about 152 points, or 1.59 per cent, to the 9,472 level. Broader market indexes are also down more than 1.5 per cent.
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