Stocks sink as worry on U.S. economy deepens
Stocks sank Monday as Wall Street worried that a budget fight in Washington could lead to an event far worse for the economy: a failure to raise the nation's borrowing limit.
At the close of trading on Wall Street, the Dow Jones industrial average was down 128.57 points at 15,129.67. The Standard & Poor's 500 index fell 0.60 percent to 1,681.55. The Nasdaq composite dropped 0.27 percent to 3,771.48.
Investors pulled back from stocks as a budget fight in Congress threatened to push the government into a partial shutdown for the first time in 17 years.
There is a simple reason why the budget battle and, more importantly, an upcoming fight over the debt ceiling are so crucial: The credit of the United States is the bedrock that nearly every other investment is built upon, largely due to the assumption that the nation will always pay its debts.
"The concern is government has become so polarized that if it cannot pass [a budget], there's a greater chance that the debt ceiling battle will go to the brink or possibly lead to a default," said Alec Young, global equity strategist with S&P Capital IQ. -- AP