Stocks Drop Most in Five Weeks on Capitol Shooting, Shutdown Concerns
NEW YORK ( TheStreet) -- Major U.S. equity markets fell the most in five weeks Thursday as the U.S. Capitol was briefly lcoked-down following an apparent shooting near the building and
President Obama warned Wall Street that a prolonged shutdown and failure to raise the debt ceiling would have a wide and negative impact on the economy.
The S&P 500 dropped the most since Aug. 27, the fourth time in five days, losing 0.8% to 1,680.94. The Dow Jones Industrial Average also fell 0.8% to 15,018.71 while the Nasdaq declined 1% to 3,777.80.
Thursday marked the third day of the partial government shutdown, a closure sparked by a Congressional impasse that prevented funding federal offices as well as programs previously approved the legislature. "Non-essential" federal employees remain on furlough without immediate pay.
President Obama told CNBC Wednesday that Wall Street should be "concerned" that Congress has yet to forge an agreement to fund the government and raise the debt ceiling, which the Treasury Department expects to reach on Oct. 17.
The U.S. Capitol was placed on lockdown Thursday afternoon after reports of gunfire outside the building, reports The Associated Press. Officials said at least one police officer has been injured. The female suspect was killed at the scene, Reuterssays. Police enforced shelter-in-place orders for for those within the Capitol and surrounding area.
The trading began with comparatively good news for economic recovery as jobless claims for the week ended Sept. 28 rose less than anticipated. The Labor Department Thursday said personal filings totaled 308,000. Economists polled by Thomson Reuters were expecting claims of 313,000. The four-week moving average dipped to 305,000 claims.
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August factory orders did not report on Thursday because of the shutdown. The Institute for Supply Management's non-manufacturing index for September came in at 54.4, which declined from the previous month's revised 58.6 reading. Analysts were expecting the index to hit 57.4.