North American markets saw a big selloff as early relief over a clear-cut winner from the U.S. presidential election turned to pessimism over the prospects of stopping a string of tax hikes and steep spending cuts from taking effect at the end of the year.

Investors worry this so-called ” fiscal cliff ” scenario would send the U-S back into recession, at the same time dragging down other economies around the world, including Canada’s.

New York’s Dow industrials tumbled 313 points to 12,933.. it’s worst day of 2012.

The sell-off was also spurred by the European Union which downgraded its economic forecasts for the 27-country bloc.