NEW YORK, Sept. 30 (Xinhua) -- U.S. stocks retreated on Monday but still ended September and the third quarter of this year on a strong note, as a partial U.S. government shutdown nears.
The Dow Jones Industrial Average lost 128.57 points, or 0.84 percent, to 15,129.67 points. The Standard & Poor's 500-stock Index dropped 10.20 points, or 0.60 percent, to 1,681.55 points. The Nasdaq Composite Index shed 10.11 points, or 0.27 percent, to 3,771.48 points.
Despite the pullback, the stock market still capped an impressive month and quarter. For September, the Dow gained 2.2 percent, and the S&P 500 advanced 3.0 percent while the Nasdaq jumped 5.1 percent. For the quarter, all of the three indices rose 1.5 percent, 4.7 percent and 10.8 percent, respectively.
The U.S. Senate on Monday afternoon rejected a funding bill plan passed by the House of Representatives early Sunday. The upper chamber approved removal of one-year delay of Obamacare from the House funding bill.
The Senate funding bill now gets back to House. The market thus posted a seesaw trading session on the budget stalemate in Washington.
U.S. President Barack Obama noted that he is "not at all" resigned to a government shutdown and he expects to speak to congressional leaders to address the budget gridlock. A GOP House member, however, told CNBC that there will be no clean spending bill Monday night.
Mark Newton, chief technical analyst at Greywolf Execution Partners Inc., said Monday that "a longer shutdown and inability to come together might have more bearish consequences for the overall market."
Newton also noted that the U.S. stock market reacted differently following government shutdowns that occurred in the past 35 years, but "in the last 25 years, this hasn't really been all that meaningful for stocks," he said.
The budget stalemate in Washington also took a toll on global stock market Monday, with Japanese Nikkei index falling 2 percent. The European stock market also closed in red territory.
A shutdown would prompt federal agencies to suspend a large range of activities. Morgan Stanley estimated that every week of a shutdown would shave 0.15 percentage point from the quarterly growth of U.S. gross domestic product.
On the economic front, the Chicago Business Barometer rose 2.7 points to 55.7 in September from 53.0 in August, supported by production, new orders and supplier deliveries, the Institute for Supply Management-Chicago said Monday.
Meanwhile, Texas factory activity expanded in September at a slightly faster pace than in August, the Federal Reserve Bank of Dallas said. The production index, a key measure of state manufacturing conditions, rose from 7.3 to 11.5.
On other markets, oil prices dropped Monday on concerns that a possible government shutdown may dampen the demand from the world' s largest oil-consuming country.
Light, sweet crude for November delivery decreased 0.54 dollars to settle at 102.33 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 0.26 dollars to close at 108.37 dollars a barrel.
The U.S. dollar pared some of earlier losses but still weakened against major currencies despite greater possibility of a partial government shutdown. In late New York trading, the euro rose to 1. 3525 dollars from 1.3518 dollars of the previous session, the dollar bought 98.21 Japanese yen, lower than 98.28 yen of the previous session.
Gold futures on the COMEX division of the New York Mercantile Exchange went down Monday. The most active gold contract for December delivery dropped 12.2 dollars, or 0.91 percent, to settle at 1,327 dollars per ounce.