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U.S. stocks fall as budget fight continues

By Agence France-Presse
Monday, October 7, 2013 19:48 EDT
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The Wall Street sign near the front of the New York Stock Exchange is viewed on Aug. 5, 2011. [AFP]
 
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US stocks Monday finished lower as a partial US government shutdown entered its second week with no sign of resolution.

At the closing bell, the Dow Jones Industrial Average fell 135.76 (0.90 percent) to 14,936.82.

The broad-based S&P 500 tumbled 14.31 (0.85 percent) to 1,676.19, while the tech-rich Nasdaq Composite Index gave up 37.36 (0.98 percent) at 3,770.40.

The paralysis in Washington continued to weigh on markets. Analysts have expressed particular concern that the fight over the budget will stymie efforts to raise the budget ceiling, resulting in a US default with damaging economic consequences.

However, the market still considers a US default unlikely, said Peter Cardillo, chief market economist at Rockwell Global Capital.

“If the markets were really fearful of a default…. we wouldn’t be down a half a percent or three-quarters of a percent,” Cardillo said. “We would be down a heck of a lot more.”

[Image via Agence France-Presse]

Agence France-Presse
Agence France-Presse
AFP journalists cover wars, conflicts, politics, science, health, the environment, technology, fashion, entertainment, the offbeat, sports and a whole lot more in text, photographs, video, graphics and online.
 
 
 
 
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