Stock market drops as investors fret over budget fight
Stock market took a hit from Washington's budget battle Friday. A showdown over federal spending sent the stock market plunging in an afternoon sell-off that wiped out all the gains from a rally earlier this week.
Washington's budget fight jolted Wall Street on Friday, reminding it that the next few weeks could bring a lot of uncertainty.
Investors hate uncertainty, and stocks plunged in afternoon sell-off that wiped out all the gains from rally earlier this week, when the Federal Reserve kept its huge economic stimulus program intact.
The vote itself wasn't a surprise, but it reminded investors that the Republican-led House and the Democratic-controlled Senate are poised for a showdown over federal spending.
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.