Newly-elected US President Barack Obama set aside victory celebrations of Wednesday and set about to meet the financial challenges facing the country even as fresh economic data fuelled fears of a long and painful recession.

A plunge in the Wall Street on Wednesday appeared as a sharp reminder of the breadth of economic problems staring at the country. Even amidst the victory celebrations, the Dow Jones Industrial average dropped more than 5% or 486 points to settle at 9139. The plunge effectively wiped out Tuesday’s rise of 300 points which had marked the biggest election day gain in 24 years.

The most recent monthly employment figures to be released showed that 1, 57,000 jobs were lost in October primarily due to a sharp contraction in service sector activity.

The global financial crisis had emerged as the dominant issue in the just-concluded US presidential elections. to a great extent Obama owes his victory to the perceived inability of the Bush administration to foresee the mortgage and finance crisis and act promptly to contain its impact which by now has not only affected US economy but also spilled to the rest of the world. Among the major economic problems that Obama stands to inherit are plunging house prices, a failing auto industry, chaotic stock markets and failing banks.