Budget jitters set in, stocks dive

Posted: December 22, 2012 at 1:49 a.m.

Trader Joseph Lawler (left) and specialist Jay Woods work Friday on the floor of the New York Stock Exchange, where stocks fell after a U.S. House bill to avoid end-of-the-year tax increases and government spending cuts stalled.

Investors sent Washington a reminder Friday that Wall Street is a power player in talks to avoid the “fiscal cliff.” Stocks fell sharply after House Republicans called off a vote on tax rates and left federal budget talks in disarray 10 days before tax increases and government spending cuts are scheduled to take effect.

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Business, Pages 28 on 12/22/2012