US stocks sink as Washington budget paralysis continues

(AFP) US stocks, led by the tech-rich Nasdaq, tumbled Tuesday as a Washington budget and debt ceiling impasse dragged on without clear progress.

In late-morning trade, the Dow Jones Industrial Average fell 85.55 (0.57 percent) to 14,850.69.

The broad-based S&P 500 lost 12.43 (0.74 percent) at 1,663.69, while the Nasdaq Composite Index slumped 47.71 (1.48 percent) to 3,167.98.

Republican and Democratic leaders in Washington continued to adopt a tough line Tuesday, as the government began the second week of a partial shutdown and the critical October 17 deadline loomed to raise the debt ceiling.

Mace Blicksilver, director of Marblehead Asset Management, said some investors opted to cash out of major Nasdaq tech stocks that have risen significantly in recent months.

"Investors are concerned that if this thing lingers on, you can have a more general sell-off," Blicksilver said.

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