CAIRO -- Supporters and opponents of Egypt's president on Sunday grew more entrenched in their potentially destabilizing battle over the Islamist leader's move to assume near-absolute powers, with neither side appearing willing to back down as the stock market plunged amid the fresh turmoil.
The standoff poses one of the hardest tests for the nation's liberal and secular opposition since Hosni Mubarak's ouster nearly two years ago. Failure to sustain protests and eventually force Mohammed Morsi to loosen control could consign it to long-term irrelevance.
Clashes between the two sides spilled onto the streets for a third day since the president issued edicts that make him immune to oversight of any kind, including that of the courts.
A teenager was killed and at least 40 people were wounded when a group of anti-Morsi protesters tried to storm the local offices of the political arm of the president's Muslim Brotherhood in the Nile Delta city of Damanhoor, according to security officials.
It was the first reported death from the street battles that erupted across much of the nation on Friday, the day after Morsi's decrees were announced.
The tensions also dealt a fresh blow to the economy, which has suffered due to the problems plaguing the Arab world's most populous nation since Mubarak's ouster.
Egypt's benchmark EGX30 stock index dropped 9.59 percentage points Sunday in the first trading session since Morsi issued his decrees. The losses were among the biggest since the turbulent days and weeks immediately after Mubarak's ouster in a popular uprising last year. The loss in the value of shares was estimated at close to $5 billion.
The judiciary, the main target of the edicts, has pushed back, calling the decrees a power grab and an "assault" on the branch's independence. Judges and prosecutors stayed away from many courts in Cairo and other cities on Sunday.
But the nation's highest judicial body, the Supreme Judiciary Council, watered down its opposition to the decrees on Sunday. It told judges and prosecutors to return to work and announced that its members would meet with Morsi on Monday to try to persuade him to restrict immunity to major state decisions like declaring war or martial law or breaking diplomatic relations with foreign nations.
Morsi's office issued an English-language statement late Sunday defending his decrees and repeating the argument he used when addressing supporters Friday outside his Cairo palace -- that they were designed to bolster the country's transition to democratic rule and dismantle Mubarak's old regime.