US stocks fall as budget fight continues

The New York Stock Exchange stands on Wall Street on Aug 27, 2013 in New York City. US stocks on Monday finished lower as a partial US government shutdown entered its second week with no sign of resolution. -- FILE PHOTO: AFP 
The New York Stock Exchange stands on Wall Street on Aug 27, 2013 in New York City. US stocks on Monday finished lower as a partial US government shutdown entered its second week with no sign of resolution. -- FILE PHOTO: AFP 

NEW YORK (AFP) - US stocks on Monday finished lower as a partial US government shutdown entered its second week with no sign of resolution.

At the closing bell, the Dow Jones Industrial Average fell 135.76 (0.90 per cent) to 14,936.82.

The broad-based S&P 500 tumbled 14.31 (0.85 per cent) to 1,676.19, while the tech-rich Nasdaq Composite Index gave up 37.36 (0.98 per cent) at 3,770.40.

The paralysis in Washington continued to weigh on markets. Analysts have expressed particular concern that the fight over the budget will stymie efforts to raise the budget ceiling, resulting in a US default with damaging economic consequences.

However, the market still considers a US default unlikely, said Mr Peter Cardillo, chief market economist at Rockwell Global Capital.

"If the markets were really fearful of a default.... we wouldn't be down a half a percent or three-quarters of a per cent," Mr Cardillo said. "We would be down a heck of a lot more."