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U.S. Stocks Extend Declines After Feinstein Says Deal Fell Apart

U.S. stocks extended declines after Dianne Feinstein told reporters an emerging agreement in the Senate had fallen apart, reducing optimism that lawmakers will reach an agreement on extending the debt ceiling.

The Standard & Poor’s 500 Index fell 0.7 percent to 1,697.41 at 2:46 p.m. in New York.

Senate Majority Leader Harry Reid rejected a House plan to halt the fiscal impasse, as Senate leaders put on hold bipartisan talks aimed at ending the 15-day-old government shutdown and preventing a default.

“It’s all fallen apart,” Feinstein, a Democratic Senator from California, said of the talks on a budget deal.

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