The House's failure to vote on Speaker John Boehner's "Plan B" to avert the so-called fiscal cliff led to a sharp early sell-off on Wall Street.
The Dow Jones industrial average was down 117 points, or 0.9%, to 13,195 shortly after the opening bell Friday.
The broader Standard & Poor's 500 index fell 14 points, or 1%, to 1,429. The technology-heavy Nasdaq was down 45 points, or 1.5%, to 3,005.
The U.S. House of Representatives' failure to bring Speaker Boehner's plan to a vote Thursday fueled pessimism that hyper-partisan Washington could defuse a looming fiscal crisis that economists predict could lead to a recession.
Boehner abruptly canceled a vote late Thursday on his "Plan B" that would prevent taxes going up at year's end for all but those earning more than $1 million a year. The speaker was scheduled to hold a press conference Friday morning.