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U.S. Stocks Drop in Response to Ongoing Shutdown

New York, October 8 (RHC)-- U.S. stocks fell on Monday as the partial government shutdown and the debt-ceiling standoff linger, prompting nervous investors to sell-off their stocks. The S&P 500 index closed at a four-week low, extending two weeks of losses.

Investors are reportedly looking ahead to the upcoming debate over the debt ceiling, which could result in a default on U.S. debt if not resolved.

Much of the federal government has been closed since the start of October, resulting in nearly one million workers being furloughed. Neither Republicans nor Democrats have offered any sign of progress in the budget stalemate and both blamed the other side for the impasse.

However, a majority of Americans mostly blame the Republican Party for the government closure that is into its second week with no end in sight.

China and Japan have warned the U.S. that the prospect of Washingtons first ever default over the debt-ceiling deadline could seriously harm the international economy. China holds $1.277 trillion in US Treasury bonds, second only to Japan.

Edited by Juan Leandro
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