Stock futures sink after debt talks hit impasse

Friday, July 22, 2011, Vol. 35, No. 29

NEW YORK (AP) — Stock futures are falling a day after congressional leaders failed to agree on a deal to raise the nation's debt limit.

Lawmakers hoped to reach a compromise on debt Sunday. But those talks stalled. President Barack Obama wants to raise revenues by letting tax cuts for wealthy Americans expire. Republicans have pushed for more spending cuts and have rejected higher taxes.

If an agreement is not reached by Aug. 2, the U.S. could default on its debt. That could have a catastrophic impact on financial markets.

Ahead of the opening bell Monday, Dow Jones industrial average futures are down 85 points, or 0.7 percent, at 12,536. Standard & Poor's 500 futures are down 10, or 0.8 percent, at 1,331. Nasdaq 100 futures are down 14, or 0.6 percent, at 2,414.