The S&P 500 fell 2 percent while the Dow and Nasdaq extended losses on Tuesday as worries about the economy and a possible U.S. credit downgrade overshadowed relief over enactment of a law avoiding a U.S. default.

The Dow Jones industrial average <.DJI> was down 202.34 points, or 1.67 percent, at 11,930.15. The Standard & Poor's 500 Index <.SPX> was down 25.58 points, or 1.99 percent, at 1,261.36. The Nasdaq Composite Index <.IXIC> was down 57.50 points, or 2.10 percent, at 2,687.11.

(Reporting by Caroline Valetkevitch; Editing by Jan Paschal)