“Investors are having second thoughts,” said Peter Cardillo, chief market economist at Rockwell Global Capital, who expects a volatile session Wednesday in the wake of Obama’s win.Read: What Obama's victory means for investors
“There’s no clear mandate by this election, no changes in Congress or Senate. Everything stays the same. Obama did win, but it was a very narrow victory,” said Cardillo.
“I think investors are awakening to the fact that there’s no change and we have a fiscal cliff that’s looming and unless common ground is reached quickly, we could be headed for serious economic decay,” he said.Read: Interpreting market's day-after reaction
President Obama secured a second term after winning a number of electoral-vote-rich states and several key battlegrounds. Read: Obama captures second term as president
But fiscal-cliff issues loom. Some $600 billion of automatic tax rises and spending cuts are scheduled to kick in at the end of 2012, which could push the economy into recession, unless Democrats and Republicans can forge a compromise.
Initial reaction
Stock futures fell sharply in Asia when early polls indicated that Obama was likely to be reelected, but they came off their worst levels after that victory became clear. Europe saw choppy trading with gains eventually melting away.
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