FILE - In this New York Stock Exchange Friday, Dec. 21, 2012, photo, Trader Warren Meyers uses his handheld device as he works on the floor of the New York Stock Exchange. Stocks are down Monday, Dec. 24, 2012, amid concern that lawmakers will fail to reach a deal to stop the U.S. going over the so-called fiscal cliff. (AP Photo/Richard Drew)
NEW YORK -- Stocks closed lower today on concern that lawmakers will run out of time to reach a budget deal before year-end.
The Dow Jones industrial average lost 52 points to close at 13,139 in a shortened holiday trading session.
The Standard & Poor's 500 index fell three points to 1,427. The Nasdaq composite dropped 8 points to close at 3,013.
Sen. Joe Lieberman (I., Conn.) said that it is now “more likely we'll go over the cliff than not,” following the failure of a plan by House Speaker John Boehner's to allow tax rates to rise on wealthier Americans.
Failure to agree on a budget plan by Jan. 1 would lead to government spending cuts and tax hikes that could push the economy into recession.
The markets will be closed on Christmas.