US equities drop sharply on American lawmaker's failure to approve budget cuts

© Scanpix/Reuters

On Monday US stocks experienced a sharp decline as American lawmakers did not manage to reach an agreement on budget cuts that would allow reducing national debt. S&P 500 Index experience losses for a 4^th session in a row and closed 1.9% or 22.67 points down. Dow Jones Industrial Average gave up 248.85 points, or 2.1% while Nasdaq Composite Index decreased 49.36 points, or 1.9%. According to Tim Courtney, Burns Advisory Group's leading investment officer markets are speculating on forthcoming recession.