(NEW YORK) — The market returned after the holiday weekend to worries about U.S. and global growth. Investors are still trying to gauge whether Congress will agree to avoid the “fiscal cliff,” a set of tax hikes and deep federal spending cuts set to take effect on Jan. 1.
The Dow closed Monday at 12,967, down 42 points, or 0.3 percent. The Nasdaq closed up 10 points, or 0.3 percent, at 2,976.78. The S&P closed off three points, or 0.2 percent, at 1,406.
Stocks headed lower after a warning from White House economists dampened what had been a huge weekend for retailers.
Shoppers flooded stores in record numbers, over the weekend. Though, shares of some retailers, Macy’s, Target and other chains were lower, as investors worried that the strong start to the holiday shopping season, may not last. Shares of many e-tailers were higher on cyber-Monday.
White House economists chose Monday to unveil a warning that a sudden increase in taxes for middle-income taxpayers, could reduce consumer spending next year if the current fiscal impasse in Washington isn’t remedied.
Copyright 2012 ABC News Radio
Paul R. La Monica, CNN
Parija Kavilanz, CNN
Jackie Wattles, CNN