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U.S. Stocks Fall for Fifth Day, Treasuries Gain on Budget

U.S. stocks slid for a fifth day and Treasuries rose amid concern lawmakers won’t reach a budget deal to avoid the fiscal cliff of spending cuts and tax increases looming in January. Commodities slipped as the dollar gained.

The Standard & Poor’s 500 Index lost 1.1 percent to close at 1,402.43, its biggest drop since Nov. 14, and S&P 500 futures extended their decline to as much as 2 percent after the close of trading. The benchmark gauge erased its gain for December and pared its 2012 advance to less than 12 percent. Ten-year Treasury yields fell four basis points to 1.7 percent while Italian 10-year rallied as demand increased at a debt auction. The dollar strengthened against most major peers.