Stocks drop on budget fight worries

Stock market drops as investors worry about US budget fight; sell-off erases Fed rally

Associated Press
Stocks drop as investors fret over budget fight
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FILE - In this Sept. 18, 2013 file photo, Trader F. Hill Creekmore works on the floor of the New York Stock Exchange. Global stock markets fell Friday Sept. 20, 2013, two days after the Fed announced it would keep its unprecedented stimulus in place. Public holidays kept trading muted in Asia. (AP Photo/Richard Drew, File)

NEW YORK (AP) -- The stock market is closing sharply lower as investors worry about a looming budget fight in Washington.

The Dow Jones industrial average slid 185.46 points to close at 15,451.09 Friday. The sell-off erased the big rally from earlier this week, when the Federal Reserve left its huge economic stimulus program intact.

The Standard & Poor's 500 index fell 12 points to close at 1,709.91 The Nasdaq composite fell 14 points to 3,774.73

Investors are concerned about a brewing budget fight in Washington. To keep the government running, Congress must pass a short-term spending bill before the fiscal year starts Oct. 1.

Darden, the parent of Olive Garden and Red Lobster, fell $3.52, or 7 percent, to close at $45.78 after reporting lower quarterly profit

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