Markets drop as debt limit rises

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FitchRatings' announcement that the debt deal should preserve the nation's AAA credit rating did not persuade investors to take a more bullish stance on the day's investments.

Some economists had expressed concern that the debt-limit deal consisted entirely of spending cuts and did not include any provisions intended to stimulate the economy in the near term. The last two jobs reports and Friday's report on the nation's economic growth have indicated that the recovery is waning and could be in need of a boost.

Meanwhile, investors continue to seek out safe havens for their funds, driven by continued concern about the debt crisis in Europe and the slowing of the economic recovery in America. Gold hit yet another record high on Tuesday, reaching $1,645 an ounce.

And while the looming threat of a default served as a persistent threat to Treasury bonds, investors flocked to the safe investment Tuesday. The yield on 10-year Treasury bonds fell to 2.674 percent — its lowest level since November.