Stocks posted gains Monday on the news that a deal was just around the corner. On Tuesday, the news deflated investor expectations and stocks reversed course.
The Dow Jones industrial average closed down 133.25 points or 0.87 percent to 15,168.01. The Standard & Poor's 500 lost 12.08 or 0.71 percent to 1,698.06 and the Nasdaq dropped 21.26 points or 0.56 percent to 3,794.01.
On the New York Stock Exchange, 714 issues advanced while 2,371 declined on volume to 3.3 billion shares traded.
In Asia, the Nikkei 225 index in Tokyo added 36.80 points or 0.26 percent to 14,441.54. The Hang Seng index in Hong Kong gained 118.20 points or 0.51 percent to 23336.52. The Shanghai composite index in China lost 4.36 points or 0.19 percent to 2,233.41.
In Europe, the London FTSE 100 added 41.46 points or 0.64 percent to 6,549.11. The German DAX gained 80.63 points or 0.92 percent to 8,804.44 and the French CAC 40 added 33.06 points or 0.78 percent to 4,256.02.
On currency markets, the euro fell to $1.3526 and the dollar rose to 98.27 yen. On the Comex division of the New York Mercantile Exchange, gold added $3.50 to $1,280.10 per troy ounce while silver lost 6.4 cents to $21.29.
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