Stocks fall as lawmakers remain at odds over debt
NEW YORK (AP) — Stocks are closing lower on more signs that the economy is deteriorating and as the U.S. edges closer to defaulting on its debt.
With no sign of a compromise in Washington, investors are becoming more fearful that the U.S. rating could be lowered. That would raise interest rates and slow down the already weak economy.
A Federal Reserve survey said the economy weakened this summer.
The Dow Jones industrial average fell 199 points, or 1.6 percent, to close at 12,303 Wednesday.
The Standard & Poor's 500 fell 27 points, or 2 percent, to 1,305. The Nasdaq composite fell 75 points, or 2.6 percent, to 2,765.
About 11 stocks fell for every one that rose on the New York Stock Exchange. Volume was heavier than usual at 4.6 billion shares.
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