(MENAFN - ProactiveInvestors - Australia) U.S. stocks did not return to favour on Wednesday as investors become more and more convinced measures to avert the impending "fiscal cliff" are not coming.
The Dow fell 24 points to 13,115, while the Nasdaq wiped off 22 points at 2,990 points and the S&P 500 closed 7 points lower at 1,420.
Investors remain wary as talks between President Barack Obama and Congress over a plan to avoid tax hikes and spending cuts coming into effect automatically on January 1 have stalled.
The fiscal cliff refers to more than 600 billion in spending cuts and tax hikes set to take effect in the New Year unless a budget agreement can be reached.
Economists say that should no deal be reached, the fiscal cliff could likely tip the U.S. economy back into a recession.
Major retailers were impacted, with Urban Outfitters (URBN), Coach (COH), Macy's (M, Fortune 500), Tiffany & Co. (TIF), and Amazon (AMZN, Fortune 500) all ending the day in the red.
While European markets were closed for Boxing Day, Japan's Nikkei ended in positive territory with a 1.5% gain.
Hong Kong markets were also closed and the Shanghai Composite ended the day flat.
Oil and gold prices closed stronger.