Washington stalemate sinks US stocks; Nasdaq drops 2%
NEW YORK CITY (AFP) - United States stocks sank and short-term bond yields jumped on Tuesday as the stalemate in Washington over passing a budget and raising the debt ceiling took a deeper toll on financial markets.
Investors sold off a wide range of high-flying tech stocks especially as President Barack Obama toughened his line on negotiating with Republicans, saying he would not bow to extortion.
The Dow Jones Industrial Average fell 159.71 (1.07 per cent) to 14,776.53.
The broad-based S&P 500 sank 20.67 (1.23 per cent) to 1,655.45, while the tech-rich Nasdaq Composite Index plummeted 75.54 (2.00 per cent) to 3,694.83.