Stocks opened modestly lower on Wall Street Friday as investors worried that political wrangling in Washington will push the economy back into recession.
The market is coming off its worst two-day slide in a year. The Dow average plunged 434 since President Barack Obama won re-election as investors turned their focus to a deadline at the end of the year for Congress to act on reducing the budget deficit.
If it doesn’t, a series of drastic government spending cuts and tax hikes will kick into effect, potentially derailing the U.S. economy. The Congressional Budget Office said Thursday that the measures, if implemented, would likely push the economy back into recession.