Shutdown chill reaches far, wide
NEW YORK — Investors sold stocks across the board on Thursday as a federal government shutdown dragged into a third day and the nation inched toward a deadline on raising its borrowing limit.
The Dow Jones industrial average fell almost 200 points by late morning as Republicans and Democrats appeared no closer to ending the budget impasse. In a speech, President Obama said there was only one way out of the shutdown: “Congress has to pass a budget that funds our government with no partisan strings attached.”
Investors also got some disappointing economic news.
The Institute of Supply Management said sales fell sharply, new orders dipped and hiring weakened at service companies. The report covers industries including retail, construction, health care and financial services.
The stock market losses on Thursday marked an acceleration of gradual declines during the past two weeks. Stocks have fallen eight of the past 10 days as investors anticipated that negotiations over the federal budget would fail. If the shutdown persists, the weak economic recovery could falter.
House Republicans insist that Obama accept changes to the health care law he pushed through three years ago as part of a budget bill. Obama refuses to consider any deal linking the health care law to routine legislation needed to extend government funding.
The Treasury Department said that the economy could plunge into a downturn worse than the Great Recession if Congress failed to raise the debt ceiling and the country defaulted on its debt obligations.
The United States missing a debt payment could cause credit markets to freeze, the value of the dollar to plummet and interest rates to skyrocket, according to the Treasury report.
The Dow fell 136.66 points, or 0.9 percent, to 14,996.48, its biggest decline since Sept. 20. The Standard & Poor's 500 index dropped 15.21 points, or 0.9 percent, to 1,678.66. The Nasdaq composite fell 40.68 points, or 1.1 percent, to 3,774.34.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- EPA talks on pollution limits trigger protests, arrests Downtown
- It’s lights out for Bayer sign on Mt. Washington
- Huntington Bancshares to cut 200 jobs; won’t say how many in Pittsburgh
- U.S. stocks slump as earnings disappoint
- Investor helps Anchor Hocking’s parent win reprieve from lenders
- Sell home for best price
- State to seek comments on drilling below Loyalsock State Forest
- Chevron gains approval for $1B refinery project
- Fed offers a dual message on health of economy
- Vigorous economy growing roots
- Lenders could move against Anchor Hocking as extension expires