Traders got off a last-minute deal to avert default on American debt after economic tension ignited an intense round of selling that sent the Dow plummeting 266 points for the eighth-straight day. Hit the jump to read the rest of the story.
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Today’s Markets
The Dow Jones Industrial Average plummeted 266 points, or 2.2%, to 11,867, the S&P 500 slid 32.9 points, or 2.6%, to 1,254 and the Nasdaq Composite tumbled 75.4 points, or 2.8%, to 2,669. The FOX 50 dipped 21 points to 897.

In a sign of the breadth of the selloff on Wall Street, 90% of the volume on the New York Stock Exchange was in declining stocks. Adding to the negative sentiment, the blue chips have ended in the red for the past eight sessions — shedding 858 points — the longest losing streak since the financial crisis three years ago.
A bout of disappointing economic data, including a steep downward revision to first-quarter economic expansion and an unexpectedly sharp decline in U.S. manufacturing, has led market participants to doubt the robustness of the economic recovery in recent sessions.
“The U.S. economy is very close to stall speed,” wrote Peter Fisher, head of fixed income at asset-management giant BlackRock. “With the weakness of the U.S. economy becoming increasingly apparent, consumption and investment decisions are rising to the forefront.”
Data released Tuesday showed personal spending fell for the first time in nearly two years in June. The gauge of consumption dipped 0.2% , according to the Commerce Department, shy of the 0.2% increase economists expected. Meanwhile, personal income grew at a pace of 0.1% for the month, slower than forecasts of 0.2%. On the whole, the report points to weakening consumption, which directly factors into broader economic growth measures.
“The dismal employment market and increasing prices are pushing Americans to save more and spend less,” wrote Chris Christopher, senior principal economist at IHS Global Insight.
The closely-watched monthly employment report for July is on tap for Friday, and is expected to show the economy added 57,000 jobs, which would keep the unemployment rate steady at 9.2%. The labor market has been extremely slow to come back during the economic recovery.
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