U.S. stocks fell Monday as investors worried about Europe’s debt crisis and the debate over lifting the U.S. debt ceiling ahead of a big week for corporate results.
The Dow last week lost 177.44 points, or 1.4%, capping its worst week in more than a month.
Uncertainty surrounding high government debt levels in Europe and the U.S., and growing wariness about lawmakers’ ability to deal with them, has been pressuring stocks.
“Politicians on both sides of the Atlantic are not explaining realities to the voters, and this lack of leadership, as much as anything, remains a barrier to improvements in both market and economic prospects,” said David Kelly, chief market strategist at J.P. Morgan Funds.
“The reality is that any solution to U.S. debt problems will require a disciplined plan to both cut entitlement spending and raise taxes over a number of years. Any solution to the European debt problem will eventually require the richer nations in Europe to subsidize the budgets or at least the borrowing costs of their more troubled brethren,” Kelly added.