The Nasdaq and S&P are now down about 5% from all-time highs set earlier this month.<\/b>
\nStocks fell sharply Thursday as lawmakers in Washington, D.C., struggled to come to terms on spending measures investors have been anticipating for weeks, with one key Democratic senator saying he’ll only support a massive social spending package encompassing many of President Joe Biden\u2019s policy priorities if the price tag is cut by more than half. Lawmakers are facing a slew of critical deadlines in the coming weeks as they race to avert a looming government shutdown and a debt default, all while Democratic leaders try to push forward Biden’s agenda. In addition to the infrastructure vote likely to come Thursday, the Senate is expected to vote on a measure to suspend the debt limit for another year as soon as next week. On Tuesday, Treasury Secretary Janet Yellen, who\u2019s warned the potential default could trigger an \u201ceconomic catastrophe,\u201d said the department will likely exhaust its ability to pay the nation\u2019s bills by October 18, but Republicans have thus far insisted they won’t support the House-passed bill, insisting Democrats should instead wrap the measure into a budget plan to pass on a one-party basis using a special process called reconciliation. Schumer, however, struck down that option Thursday, saying the \u201cdrawn-out, unpredictable process\u201d risked taking too long and \u201cneedlessly endangering the stability of our country.\u201d In an afternoon note, market analyst Adam Crisaffuli, founder of Vital Knowledge Media, said he\u2019s \u201cmost concerned\u201d the \u201csevere bout of gridlock\u201d in Washington could force lawmakers to cut back on spending plans more than investors have anticipated. Though Crisafulli believes it\u2019s likely a debt ceiling solution will ultimately be found, he says the \u201cfact it\u2019s being used as a negotiating tool for the first time in years obviously is a negative.\u201d Republicans Block Democratic Effort To Raise The Debt Ceiling As Officials Warn Of Economic Catastrophe (Forbes) Yellen Warns Treasury Stands To Run Out Of Cash On October 18, Causing ‘Serious Harm’ To Business (Forbes)<\/p>\n