U.S. Stocks Drop as Obama Says Cuts Will Cause ‘Ripple Effects’

March 1 (Bloomberg) -- U.S. stocks declined as President Barack Obama said federal spending cuts will cause “ripple effects” throughout the economy and jobs will be lost.

The Standard & Poor’s 500 Index slipped 0.2 percent to 1,511.18, after advancing as much as 0.3 percent earlier.

Obama met with congressional leaders as no one predicted a breakthrough to avert $85 billion in federal spending cuts set to start before midnight. Stocks erased gains earlier in the day amid better-than-estimated data on consumer confidence and manufacturing.