Stocks plummeted on Monday over worries of a budget fight in Washington that could lead to an event that would be even worse for the economy- a failure to increase the nation’s borrowing limit.
Government threatened with partial shutdown
With a partial government shutdown now appearing almost imminent, investors pulled their money back from the stocks, thus causing a fall in the markets.
The government is now staring at a shutdown thanks to the raging budget battle between the congressional Republicans and Democrats. The lawmakers have only until midnight EDT to arrive at an agreement over the budget if they wish to keep the government in full operation.
While the Dow Jones average fell by 0.8%, the Standard & Poor’s 500 index slid by 0.6% and the Nasdaq composite dropped by 0.3%.
On the whole, September has been an eventful month for the investors with the beginning of the month seeing a happy rise and the end witnessing a steep fall, all thanks to the bickering in the government.