Dec. 28, 2012, 5:11 p.m. EST
Stock futures fall after hours on fiscal fears
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By Carla Mozee, MarketWatch
LOS ANGELES (MarketWatch) — U.S. equity futures fell Friday evening, with a meeting between leaders in Washington coming to an end without any announcement of a budget deal.
Futures for the S&P 500 Index SPH3 -1.82% fell 25 points and those for the Dow Jones Industrial Average DJH3 -1.62% dropped 208 points.
A meeting between President Barack Obama and congressional leaders to avoid spending cuts and tax increases set for Jan. 1 finished after the close of the regular trading session on Wall Street. The meeting lasted about 70 minutes, but no one made statements after its conclusion. Read: Obama, leaders in last grasp for cliff deal.
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The SPDR S&P 500 Trust exchange-traded fund SPY -1.08% also fell Friday evening, moving down 0.8%.
U.S. stocks closed the day session sharply lower following a report that Obama didn’t have a new offer to present to congressional leaders at their meeting. Earlier reports indicated that the president would put forth a scaled-back budget package. See: U.S. stocks sink as hopes for fiscal deal dwindle.
The roughly $600 billion of tax increases and spending cuts threatens to pull the world’s largest economy into recession, economists have warned.
The Dow Jones Industrial Average DJIA -1.21% lost 158 points, or 1.2%, at 12,938. The S&P 500 index SPX -1.10% fell 1.1% to 1,402.43 and the Nasdaq Composite COMP -0.86% gave up 0.9% to end at 2,960.31. The indexes closed lower for the holiday-shortened week.