Stocks fall as debt talks drag on in Washington

Stocks slide on Wall Street as debt deadline closes in with no solid deal in sight

Associated Press
US stocks down as investors wait on debt news
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Trader Kenneth Polcari, right, works on the floor of the New York Stock Exchange Tuesday, Oct. 15, 2013.The stock market edged lower early Tuesday even though Republican and Democratic leaders in the Senate reported that a deal over the nation's borrowing limit appears to be getting closer. (AP Photo/Richard Drew)

NEW YORK (AP) -- Stocks are closing lower as hopes fade for a quick solution to the gridlock in Washington over how to avoid a U.S. government default.

The Dow Jones industrial average fell 133 points, or 0.9 percent, to close at 15,168 points Tuesday.

The Standard & Poor's 500 index fell 12 points, or 0.7 percent, to 1,698. The Nasdaq composite index fell 21 points, or 0.6 percent, to 3,794.

The U.S. is expected to reach its borrowing limit on Thursday, jeopardizing its ability to pay its bills. Meanwhile a partial shutdown of the federal government is in its 15th day.

The market was whipsawed Tuesday as the on-again, off-again talks in Washington left investors wondering whether the U.S. could avoid defaulting on its debt.

Volume was heavy at 3.4 billion shares.

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