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Stocks slump after lawmakers fail to agree on plan to raise nation's debt limit
NEW YORK (AP) ' Stocks are falling after congressional leaders failed to agree on a deal to raise the nation's debt limit to avoid default.
Lawmakers hoped to reach a compromise Sunday, but those talks stalled. President Barack Obama wants to raise revenues by letting tax cuts for wealthy Americans expire. Republicans have pushed for more spending cuts and have rejected higher taxes.
If an agreement is not reached by Aug. 2, the U.S. won't have cash to pay all its bills. That could have a catastrophic impact on financial markets.
At the opening bell Monday, the Dow Jones industrial average is down 101 points, or 0.8 percent, at 12,575. The Standard & Poor's 500 is down 12, or 0.9 percent, at 1,332. The Nasdaq composite is down 30, or 1 percent, at 2,829.