US shares plummet after election

Traders remain deeply concerned about the state of the US economy

Wall Street shares plummeted on Wednesday, the day after the US presidential election.

The Dow Jones Industrial Average fell 496.3 points, or 5.2%, to end the day at 9,129.

The falls wiped out the gains from the election day surge on Tuesday, when the Dow Jones closed up 3.3%.

Shares fell as weak economic data highlighted the challenges that will face the new administration when it takes over in January.

Economic worries

Among the figures was a report showing that the US services sector had contracted sharply in October.

The Institute for Supply Management's service sector index fell to 44.4 in October from 50.2 in September, which is its worst reading since 1982.

There was also a report from ADP Employer Services showing that private employers made their biggest job cuts for six years last month, which made traders nervous ahead of Friday's monthly unemployment figures.

With all the worries about the economy, there is also some nervousness about whom President-elect Barack Obama will choose as his treasury secretary.

The fallers were led by financial institutions, with Citigroup and AIG both down 14% and Bank of America falling 10%.

The recent volatility has been partly blamed on the light volumes of trading, which have exaggerated the movements in share prices.