(NEW YORK) — Stocks dropped again Thursday, but not as dramatically as Wednesday, the day after President Obama was reelected. The Dow closed at 12,811.32, down 121.41 points or nearly one percent.
In the last two days the Dow has lost 434.43 points, but is still up five percent for the year.
Investor worries about the fiscal cliff, a package of tax hikes and spending cuts that will go into effect on Jan. 1 unless a budget deal is reached, seem to be driving the markets lower.
A Congressional Budget Office report released Thursday says that doing nothing about the fiscal cliff would send the economy back into recession and cause a spike in the jobless rate to 9.1 percent by next fall.
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