Markets retreat on day after Obama victory
Triangle Business Journal
U.S. stock markets plummeted Wednesday, only hours after Barack Obama made history by becoming the first African-American to be elected president of the United States.
The groundbreaking election brings with it the likelihood of more government involvement in business and the reeling economy.
The Dow was down 486 points, or 5.1 percent, to 9,139, in trading Wednesday. The Nasdaq was down 98 points, or 5.5 percent, to 1,682, while the S&P 500 was off by 5.3 percent, to 953.
Obama claimed his historic victory by winning in key battleground states such as Ohio, Florida and Pennsylvania.
According to unofficial results from the N.C. State Board of Elections, North Carolinians voted 49.67 percent in favor of Obama. His rival, Republican Sen. John McCain, received 49.40 percent of the vote in North Carolina. The state's final results will be known within 10 days, after provisional votes are counted and officials certify the preliminary results. A Democrat hasn't carried the Tar Heel State in a presidential election since Jimmy Carter did in 1976.
The Democrats enjoyed a huge day in the Tar Heel State, with Kay Hagan easily ousting incumbent Elizabeth Dole from the U.S. Senate and Bev Perdue beating Pat McCrory to become North Carolina's first woman governor.
McCain conceded defeat in a speech Tuesday night a little after 11 p.m. EST. He congratulated Obama on his victory and urged his supporters to get behind the newly elected president.
Obama gave his acceptance speech before a massive throng of people in Chicago about an hour later. "There is new energy to harness and new jobs to be created; new schools to build and threats to meet and alliances to repair," he said.
The presidential race was hotly contested, but in the end, the results weren't nearly as close as they were in 2000 and 2004. As of 9:45 a.m. Wednesday, Obama had a projected 338 electoral votes to McCain's 163.
An Obama presidency has has many implications for business. It may signal good times for the sustainability industry -- solar power, electric cars and the like -- but a new burden on utilities and other industries if the new president makes good on campaign promises to put caps on emissions. The health care industry and employer-based health insurance also are likely to see more government involvement -- both financial support and regulatory controls -- under an Obama presidency.
Obama's victory is coupled with projected gains for Democrats in the U.S. House and Senate.
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