NEW YORK (CNNMoney)
A sell-off in stocks accelerated
Thursday, as major indexes fell 1% while Washington remains paralyzed and the
nation approaches the deadline for raising the U.S. debt ceiling.
The Dow ended below 15,000, a psychologically important
level, for the first time in almost a month. The Nasdaq and S&P 500 also declined sharply.
Meetings at the White House between congressional leaders and President Obama have
failed to produce a breakthrough. Thursday marked Day 3 of the government
shutdown, and Washington gave no sign of preventing a fourth. It's making
investors jittery.CNNMoney's Fear & Greed index even briefly slid
into Extreme Fear mode.
Thursday's losses also meant the Dow and S&P 500 have dropped
for nine of the past 11 trading days,
"I think probably at the beginning of the week people didn't
think it would take so long to sort out," said David Jones, chief market
strategist at IG Markets in London. "The fact that it's dragged on is
making people a little bit nervous."
Doug DePietro, an equity trader at investment bank Evercore, noted
that the S&P 500 also broke below its 50-day moving average, a key
technical level that triggered additional selling by institutional investors.
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