US stocks ended a volatile day lower as investors remained cautious over the lack of progress in Washington budget talks.
The Dow Jones Industrial Average lost 61.33 (0.40 per cent) at 15,273.26.
The broad-based S&P 500 dipped 4.65 (0.27 per cent) to 1,692.77, while the tech-rich Nasdaq Composite Index declined 7.15 (0.19 per cent) to 3,761.10.
Stocks veered in and out of positive territory in a narrow range throughout the day.
Investors are concerned because of an October 1 deadline for Congress to fund the US government. Failure to reach a deal could force parts of the government to shut down.
“It’s very difficult for the market to go up from here with all the shenanigans in Washington,” said Mace Blicksilver, director at Marblehead Asset Management.
JPMorgan Chase was by far the best-performing company in the Dow, rising 2.7 per cent, amid reports that it could pay $US11 billion ($A12 billion) to settle a range of regulatory issues.
Though large, such a payout would remove some uncertainty overhanging the giant bank.
Walmart fell 1.5 per cent following a Bloomberg News report that it was cutting some orders with suppliers to address rising inventories and lower sales. Walmart said the report was inaccurate.
Struggling department store chain JC Penney tumbled 15.0 per cent after a Goldman Sachs report on the company’s cash position raised the possibility of a bankruptcy filing in light of tough business conditions.
Stryker, a medical technology company, fell 2.9 per cent after announcing a $US1.65 billion acquisition of Mako Surgical Group, which specialises in robotic-assisted surgery in orthopaedics. Mako surged 82.2 per cent.
Online retail giant Amazon slipped 0.5 per cent after unveiling a pair of new tablet devices. The company also released a new version of its Kindle Fire for $US139, down from $US199.
Bond prices rose. The yield on the 10-year Treasury dropped to 2.61 per cent from 2.65 per cent, while the 30-year dipped to 3.65 per cent from 3.67 per cent on Tuesday. Prices and yields move inversely.
