Stocks Sink as “Fiscal Cliff” Threatens

U.S. stocks fell 2% on Wednesday, putting the S&P 500 on track for its biggest drop since June,  as anxiety about the “fiscal cliff” and Europe’s economic troubles hammered sentiment. The Dow industrials fell 312.95 points, or 2.36%, to 12,932.73. The S&P 500 index declined 33.86 points, or 2.37%, to 1,394.53. The Nasdaq Composite shed 74.64 points, or 2.48%, to 2,937.29.

President Barack Obama defeated Republican challenger Mitt Romney in Tuesday’s presidential election and secured a second term. In congressional elections, Republicans maintained control of the House of Representatives, while Democrats retained control of the Senate.

The top Republican in the U.S. House of Representatives was set to issue a new challenge on Wednesday to a re-elected President Barack Obama to work together to avert the looming “fiscal cliff” that threatens to push the U.S. economy into a recession.

Boeing Co said Wednesday it will restructure its defense, space and security business and cut 30 percent of management jobs from 2010 levels as part of a cost-cutting drive.

Sprint has agreed to buy a swath of spectrum from US Cellular across the midwest region for $480m, the first deal fuelled by SoftBank’s recent investment in the fourth-largest US wireless carrier.