US stocks dip on debt worries
NEW YORK—US stocks fell Thursday as market worries about a possible US debt default overshadowed slightly positive economic data.
The Dow Jones Industrial Average dropped 54.95 points (0.44 percent) to 12,436.66 in closing trade.
The broader S&P 500 shed 8.87 (0.67 percent) at 1,308.85, while the tech-heavy Nasdaq dived 31.83 (1.14 percent) to 2,765.09.
The main indices had opened higher after three straight losing sessions but attention swung to the ongoing debt talks in Washington where President Barack Obama and his Republican foes came under mounting pressure to forge a compromise to avert an early August debt default.
Obama was to host top Republicans and his fellow Democrats for a fifth straight day of White House talks after the market closed, hoping to craft a deal to narrow the yawning US budget deficit while allowing cash-strapped Washington to borrow past August 2.
Economists and finance and business leaders have warned that failure to raise the US debt ceiling above the current $14.3 trillion would send shockwaves through the fragile world economy as it digs out from the 2008-2009 financial crisis.
