US stocks sink as economic uncertainty grows

Economic uncertainty overshadowed a peaceful and early transfer of power in Iraq today, cutting off a rally and leaving stocks modestly lower while investors fretted about the Federal Reserve’s imminent decision on interest rates.

Investors had worried that the transfer in Iraq would be sabotaged by terrorists, and were cheered at the surprise move, which was originally scheduled for Wednesday. Oil prices also fell sharply on the news, further boosting stocks.