US stocks fall as government shutdown looms

NEW YORK CITY (AFP) - US stocks tumbled in opening trade on Monday as a shutdown of the government loomed after Washington lawmakers failed to bridge their differences over the federal budget.

Five minutes into trade, the Dow Jones Industrial Average sank 153.94 (1.01 per cent) to 15,104.30.

The broad-based S&P 500 retreated 14.73 (0.87 per cent) at 1,677.02, while the tech-rich Nasdaq Composite Index gave up 40.15 (1.06 per cent) at 3,741.44.

Analysts said a government shutdown at midnight Monday would not likely have a huge impact on the US economy.

But the paralysis has raised concerns the two sides will not reach agreement on the more critical issue of raising the debt ceiling in mid-October.