Stocks Fall on Stalled Debt Ceiling Deal, but Recover

Deadline is just days away

U.S. financial markets fell slightly Monday in morning trading but then seemed to stabilize, suggesting that investors have not yet given up hope of a budget breakthrough by lawmakers with the debt-ceiling deadline just three days away.

Financial markets had soared late last week with a deal seemingly on the horizon. But talks stalled over the weekend, stirring fears that the government would default on its debt for the first time in U.S. history.