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Stocks fall as hopes for a budget deal fade

Monday - 12/24/2012, 3:50pm  ET

The Associated Press

Stocks are closing lower on concern that lawmakers will run out of time to reach a budget deal before year-end.

The Dow Jones industrial average lost 52 points to close at 13,139 Monday in a shortened holiday trading session.

The Standard & Poor's 500 index fell three points to 1,427. The Nasdaq composite dropped 8 points to close at 3,013.

Sen. Joe Lieberman said that it is now "more likely we'll go over the cliff than not," following the failure of a plan by House Speaker John Boehner's to allow tax rates to rise on wealthier Americans.

Failure to agree on a budget plan by Jan. 1 would lead to government spending cuts and tax hikes that could push the economy into recession.

Stocks closed early Monday before the Christmas.


Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.