Futures tumble on stalemate in Washington

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Associated Press

Posted on December 21, 2012 at 7:04 AM

Updated Friday, Dec 21 at 7:30 AM

NEW YORK (AP) — U.S. stock futures are moving sharply lower after GOP leaders unexpectedly postponed a vote on legislation that would raise taxes on wealthier Americans, bringing the country closer to the so-called fiscal cliff.

Dow Jones industrial futures are down 163 points to 13,104. The broader S&P futures have given up 19 points to 1,421.60. Nasdaq futures are down 34.50 points to 2,665.50.

House Speaker John Boehner conceded late Thursday that there were not enough votes from GOP lawmakers for his plan that would have allowed higher tax rates for loftier income ranges.

That went against a hardline pledge from House Republicans to prevent any such increase.

If no deal is reached, tax hikes will occur at the start of the year along with deep spending cuts, which could trigger a recession.

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