Investing.com - U.S. stocks dropped on Monday after U.S. lawmakers failed to negotiate a way out of a fiscal impasse needed to avoid a government shutdown by the end of the day.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.84%, the S&P 500 index fell 0.60%, while the Nasdaq Composite index slid 0.15%.
The U.S. Congress still had several hours to approve a spending package to avoid a government shutdown by the closing bell, though waning faith for a last-minute deal steered investors away from stocks throughout the day.
Congressional Republicans and Democrats continued to spar over President Barack Obama's healthcare law, a bargaining chip to fund a spending package to keep the government running.
Many Republicans oppose the president's healthcare reform and want it delayed in exchange for approving a spending deal, something the Democratically controlled Senate rejected on Monday afternoon.
While the dollar reversed earlier losses and even inched up into positive territory at times on better-than-expected economic indicators, which boosted expectations for the Federal Reserve to begin tapering stimulus programs once fiscal jitters subside, stocks stayed lower.
The Federal Reserve Bank of Dallas reported earlier that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls for the index to remain unchanged.
Separately, industry data revealed that the Chicago purchasing managers' index hit 55.7 in September from 53.0 in August, beating analysts' calls for a 54.0 reading
The data rekindled market expectations for the Federal Reserve to begin tapering its USD85 billion monthly bond-buying program this year, possibly later this month.
Fed asset purchases aim to spur recovery by driving down interest rates, bolstering stocks in the process, though talk of their dismantling can have the reverse effect.
Leading Dow Jones Industrial Average performers included Cisco, up 0.43%, Microsoft, up 0.12%, and Johnson & Johnson, which was down 0.01%.
The Dow Jones Industrial Average's worst performers included Procter & Gamble, down 2.11%, United Technologies, down 1.47%, and Nike, down 1.36%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 1.06%, France's CAC 40 fell 1.03%, while Germany's DAX 30 fell 0.77%. Meanwhile, in the U.K. the FTSE 100 finished down 0.77%.
On Tuesday, the Institute of Supply Management is to produce a report on manufacturing activity, a leading economic indicator.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.84%, the S&P 500 index fell 0.60%, while the Nasdaq Composite index slid 0.15%.
The U.S. Congress still had several hours to approve a spending package to avoid a government shutdown by the closing bell, though waning faith for a last-minute deal steered investors away from stocks throughout the day.
Congressional Republicans and Democrats continued to spar over President Barack Obama's healthcare law, a bargaining chip to fund a spending package to keep the government running.
Many Republicans oppose the president's healthcare reform and want it delayed in exchange for approving a spending deal, something the Democratically controlled Senate rejected on Monday afternoon.
While the dollar reversed earlier losses and even inched up into positive territory at times on better-than-expected economic indicators, which boosted expectations for the Federal Reserve to begin tapering stimulus programs once fiscal jitters subside, stocks stayed lower.
The Federal Reserve Bank of Dallas reported earlier that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls for the index to remain unchanged.
Separately, industry data revealed that the Chicago purchasing managers' index hit 55.7 in September from 53.0 in August, beating analysts' calls for a 54.0 reading
The data rekindled market expectations for the Federal Reserve to begin tapering its USD85 billion monthly bond-buying program this year, possibly later this month.
Fed asset purchases aim to spur recovery by driving down interest rates, bolstering stocks in the process, though talk of their dismantling can have the reverse effect.
Leading Dow Jones Industrial Average performers included Cisco, up 0.43%, Microsoft, up 0.12%, and Johnson & Johnson, which was down 0.01%.
The Dow Jones Industrial Average's worst performers included Procter & Gamble, down 2.11%, United Technologies, down 1.47%, and Nike, down 1.36%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 1.06%, France's CAC 40 fell 1.03%, while Germany's DAX 30 fell 0.77%. Meanwhile, in the U.K. the FTSE 100 finished down 0.77%.
On Tuesday, the Institute of Supply Management is to produce a report on manufacturing activity, a leading economic indicator.