New York, NY, United States (4E) – U.S. stocks fell at the start of trading on Monday as the Senate faltered in ending the government shutdown and raising the borrowing authority of the Treasury Department.
The Dow Jones Industrial Average, S&P 500 index and Nasdaq Composite declined 0.6 percent, 0.5 percent and 0.5 percent, respectively, to erase some of last week’s huge gains. The Dow lost 92.54 points to open at 15,144. S&P fell 9.26 points to open at 1,695 while Nasdaq sank 20.74 points to 3,771.
In Washington, Senate Democrats are not accepting the Republicans’ offer to fund the government for six months at a yearly level of $986 billion, raise the borrowing limit, make modest reforms to ObamaCare, grant federal agencies more flexibility to manage their budgets and establish a bicameral budget conference. Instead, they called on Republicans to unwind the automatic spending cuts known as sequestration, Sen. Bob Corker (R-Tenn.) told reporters in the Capitol Sunday afternoon.
Corker accused the White House of pushing Senate Majority Leader Harry Reid (D-Nev.) and Senate Democrats to lift the sequester in any measure reopening the government.
Democrats said they oppose the Republican proposal developed by Sen. Susan Collins (R-Maine) because it would permit the sequester to stay in place through March.