(NEW YORK) — Fiscal cliff fears may lead to a major sell off Friday on Wall Street.
After the Republican revolt in the House on Thursday, House Speaker John Boehner was forced to abandon his plan to avert tax increases for most Americans.
As a result, Asian stock markets were down sharply overnight. European markets were also trading lower on Friday, while U.S. stock futures were in the red ahead of the opening bell.
Many business leaders warn the longer it takes to deal with taxes and spending, the greater the harm will be to the economy.
Coming into Friday’s trading session, stocks are higher for the week. The day before, the Dow rose 60 points to 13,312, while the Nasdaq gained six points and the S&P added eight.
Copyright 2012 ABC News Radio
Jackie Wattles, CNN
Parija Kavilanz, CNN
Paul R. La Monica, CNN