U.S. Stocks Fall As Government Shutdown Looms

@AFP

New York City (AFP) – U.S. stocks tumbled in early trade Monday as a shutdown of the government loomed after Washington lawmakers failed to bridge their differences over the federal budget.

About 40 minutes into trade, the Dow Jones Industrial Average fell 125.75 (0.82 percent) to 15,132.49.

The broad-based S&P 500 retreated 12.12 (0.72 percent) at 1,679.63, while the tech-rich Nasdaq Composite Index gave up 28.01 (0.74 percent) at 3,753.59.

Analysts said a government shutdown at midnight Monday would not likely have a huge impact on the U.S. economy.

But the paralysis has raised concerns the two sides will not reach agreement on the more critical issue of raising the debt ceiling in mid-October.

“The market is nervous and maybe the market is looking at it as an excuse to sell off,” said Peter Cardillo, chief market economist at Rockwell Global Capital.

Financial stocks suffered amid concerns that the Washington gridlock could derail the U.S. economic recovery. Dow members American Express and Goldman Sachs each lost 1.0 percent.

Some large technology companies also sank, including Dow member Microsoft (-1.3 percent), Yahoo (-1.0 percent),online retailer Amazon (-1.2 percent) and social networking giant Facebook (-0.8 percent).

Achillon Pharmaceuticals plummeted 53.0 percent after announcing that the Food and Drug Administration decided to maintain its “clinical hold” on its sovaprevir treatment for the chronic hepatitis C virus. Achillon said it would continue to work with the FDA to try to progress the drug.

Bond prices were unchanged. The yield on the 10-year Treasury held flat compared with Friday at 2.62 percent, while the 30-year was steady at 3.68 percent. Prices and yields move inversely.

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

How A Stuttering President Confronts A Right-Wing Bully

Donald Trump mocks Joe Biden’s stutter,” the headlines blare, and I am confronted (again) with (more) proof that the presumptive Republican presidential nominee hates people like me.

Keep reading...Show less
Trump at Trump Tower

Former President Donald Trump at Trump Tower in Manhattan

NEW YORK, March 25 (Reuters) - Donald Trump faces a Monday deadline to post a bond to cover a $454 million civil fraud judgment or face the risk of New York state seizing some of his marquee properties.Trump, seeking to regain the presidency this year, must either pay the money out of his own pocket or post a bond while he appeals Justice Arthur Engoron's February 16 judgment against him for manipulating his net worth and his family real estate company's property values to dupe lenders and insurers.

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}