Stocks fall on concern about budget fight, economy
The debt ceiling must be raised by Oct. 1 to avoid a government shutdown, and a potential default on payments, including debt, later in the month.
"There seems to be a higher probability there will be more of a battle over that," said Scott Wren a senior equity strategist at Wells Fargo Advisors. "That could inject some volatility into the market."
Apple rose the most in the S&P 500 after shoppers snapped up 9 million of its newest iPhones following a rollout of the devices on Friday. The company’s stock climbed $23.23, or 5 percent, to $490.60.
Shares of the troubled smartphone maker Blackberry rose 1.1 percent to $8.82 after financial company Fairfax Financial Holdings offered to buy the company in a deal valued at $4.7 billion.
The company’s stock had been trading about 5 percent lower before the deal was announced. Blackberry plunged Friday after the company announced a loss of nearly $1 billion and layoffs of 4,500 workers.
The Standard and Poor’s 500 index is up 19 percent for the year. If the index closed the year at its current level it would log its best gain since 2009, when it rose 23 percent.
In government bond trading, the yield on the 10-year Treasury note fell to 2.70 from 2.74 percent.
In commodities trading, the price of oil fell $1.16, or 1.1 percent, to $103.59 a barrel. The price of gold fell $5.50, or 0.4 percent, to $1,327 an ounce.
The dollar rose against the euro and fell against the Japanese yen.