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Nasdaq falls 2 percent on economy worries


    NEW YORK (Reuters) - The Nasdaq fell 2 percent while the Dow and S&P 500 extended losses on Tuesday as worries about the economy outweighed relief over enactment of a law avoiding a U.S. default.

    The Dow Jones industrial average was down 167.33 points, or 1.38 percent, at 11,965.16. The Standard & Poor's 500 Index was down 22.21 points, or 1.73 percent, at 1,264.73. The Nasdaq Composite Index was down 50.84 points, or 1.85 percent, at 2,693.77, after falling as much as 2 percent.

    (Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)