US markets fall over budget failure

Stocks have plunged in the US after Congress’ latest bid to resolve the federal budget gridlock appeared to fail.

The Dow Jones industrial average fell 312 points, or 2.7%. The Standard & Poor’s 500 index was down 31, or 2.5%, at 1,185. The Nasdaq composite index was down 68, or 2.7%, at 2,504.