News Column

Investors Worry, Stocks Head Lower, Fiscal Cliff Is Closer

Dec. 27, 2012
fiscal cliff

U.S. stock markets slumped Thursday as investors braced for the possibility the economy would be jolted by the lack of a new budget agreement.

Without a new budget plan in place by Jan. 1, a budget that calls for $500 billion in spending cuts and tax hikes would take effect. This has widely been predicted to be too much of an adjustment for the economic recovery, which is expected to turn into a recession should the default budget become law.

In midmorning trading Thursday, the Dow Jones industrial average lost 73.35 points or 0.56 percent to 13,041.24. The Nasdaq lost 14.23 points or 0.48 percent to 2,975.93.

The Standard & Poor's 500 shed 8.86 points or 0.62 percent to 1,410.97.

The 10-year treasury note was up 9/32 to yield 1.724 percent.

The euro rose to $1.3228 from Wednesday's $1.3224. The dollar rose to 85.93 yen from 85.62 yen.

In Tokyo, the Nikkei 225 index added 0.91 percent, 92.62 points, to 10,322.98.

Source: Copyright United Press International 2012

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