💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

U.S. stocks drop on government shutdown worries; Dow Jones down 0.87%

Published 09/30/2013, 09:43 AM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
JP225
-
HK50
-
IXIC
-
Investing.com - U.S. stocks opened sharply lower on Monday, as growing worries over a possible U.S. government shutdown weighed on investor confidence.

During early U.S. trade, the Dow Jones Industrial Average declined 0.87%, the S&P 500 index retreated 0.70%, while the Nasdaq Composite index lost 0.82%.

Markets were jittery as political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over the prospect for a government shutdown.

Congress must pass a short-term budget by midnight on Monday in order to keep the government open.

Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.

Among tech stocks, BlackBerry slipped 0.12% after the company on Friday posted a quarterly loss of nearly USD1 billion, as previously warned, which included a writedown for unsold Z10 smartphones, the company's latest device.

Last week, BlackBerry signed a tentative USD9-a-share agreement to be acquired by a consortium led by Fairfax Financial, its largest shareholder.

Apple shares tumbled 1.21% as CEO Tim Cook was expected to meet with billionaire investor Carl Icahn, presumably to talk about the tech giant's future stock buyback plans.

Separately, Interbrand's annual Global Brands report ranked Apple as the most valuable for the first time.

Adding to losses, J.C. Penney was down 4.20% after diving nearly 15% on Friday. Last week, the retailer priced 84 million shares of common stock at USD9.65 each through Goldman Sachs.

Elsewhere, Lumber Liquidators tumbled 1.36% following reports federal authorities executed a search warrant at the hardwood flooring retailer's headquarters.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.13%, France’s CAC 40 plunged 1.38%, Germany's DAX lost 1.12%, while Britain's FTSE 100 retreated 0.83%.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.50%, while Japan’s Nikkei 225 Index plunged 2.06%.

Investors also remained cautious after Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections to be held.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.