Investors Fret as Debt Ceiling Worries Grow
As investors refocused their worries from the budget to the debt ceiling battle, stocks made a more significant decline on Thursday.
Stocks sank further on Thursday, as investors began to worry that the ongoing budget battle was a signal that the debt ceiling negotiations would meet a similar fate. The spirit of bearishness was fed by a disappointing September Non-Manufacturing ISM Report on Business. The ISM’s Non-Manufacturing Index dropped to 54.4 from August’s 58.6. Economists were expecting a less-significant decline to 57.
Tesla Motors (NASDAQ:TSLA) continued to fall another 4 percent on Thursday, as a result of the YouTube video of a burning Tesla Model S, which we discussed on Thursday. The fire started after the car reportedly drove over “a metallic object”. The incident inspired a new expression used in situations wherein high-flying stocks make abrupt declines: The stock drove over a metallic object.
The Dow Jones Industrial Average (NYSEARCA:DIA) lost 136 points to finish Thursday’s trading session at 14,996 for a 0.90 percent decline. The S&P 500 (NYSEARCA:SPY) also fell 0.90 percent to close at 1,678. The Nasdaq 100 (NASDAQ:QQQ) sank 1.21 percent to finish at 3,213. The Russell 2000 (NYSEARCA:IWM) dropped 1.08 percent to close at 1,070.
In other major markets, oil (NYSEARCA:USO) sank 0.75 percent to close at $37.14. On London’s ICE Futures Europe Exchange, December futures for Brent crude oil declined 61 cents (0.56 percent) to $107.69/bbl. (NYSEARCA:BNO). December gold futures fell $3.10 (0.23 percent) to $1,317.60 per ounce (NYSEARCA:GLD). Transports drove over a metallic object on Thursday, with the Dow Jones Transportation Average (NYSEARCA:IYT) declining exactly one percent.