Despite the recent election, and booms from previous days due to the election hype the stock market fell sharply. Nasdaq dropped 5.5 %, Dow Jones dropped 5%, and Standard & Poor’s 500-stock index fell 5.3 percent. Wall street began to drop after a report showed that activity at the nation’s service industries in October went down in, the drop was the steepest drop since records began in 1997.
"I think anytime you do see a rally like we’ve been having, there will always be a little bit of pullback when people wake up and see things like today’s headline number on nonmanufacturing activity, which was the lowest of all time,” Michael Feroli, an economist at JPMorgan Chase, said. “If there’s data out, there’s going to be bad news out. That will tend to keep market enthusiasm a little bit contained.”"
This article should remind us those we are still feeling much of the election euphoria, it is serious business to fix the economy and it will take more than just "hope"
1 comment:
People are much looking forward to what Obama, our new president will start to do after his inauguration on Jan 20. There are 2 positions of the Board of Governors of the Fed that the President will need to appoint (this will influence the nation's economic policy significantly). An interesting note is that Former Chairman of the Fed, Paul A. Volcker, is one of the econ. advisers for the President. This perhaps say that Obama might be a pretty heavy regulator. We'll see... :)
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