Like This Wall Street hates nothing more than uncertainty. But the markets got a fat dose of doubt when the U.S. Presidential race turned into a cliffhanger, with the outcome now riding on a recount in Florida. What's more, the already thin Republican majority in Congress has shrunk, making it harder for either party to push new legislation through. It will undoubtedly be readjusted to the reality of no mandate.
Business generally welcomes tax-slashing proposals.
Similarly, a Chief Executive Gore could have trouble mustering the support needed to move ahead with any proposals to beef up drug coverage for Americans. Seniors have been clamoring for expanded benefits, but such talk has pharmaceutical companies running scared about government price controls on drugs. But such a power split on Capitol Hill might not be so bad. If history is any guide, the stock market would do better under a Democrat than a Republican. But the first year of any new Administration is usually a rocky one for the market.