US equities pared early gains as investor sentiment turned sour following a report released by the Wall Street Journal that the US would hit its debt limit by mid-October.
The Dow Jones Industrial Average index lost 64.05 points to 14,946.46 and he S&P500 index gave back 6.72 points to 1,656.78.
According to a report released by the Wall Street Journal, the US Treasury Department would hit its borrowing limit come mid-October and would no longer be able to settle its debts soon thereafter.
This timeframe was earlier than most had expected, even as the government had already hit the borrowing limit some months past. The US Treasury Department had actually already employed emergency measures, including suspension of some pension contributions, to buy more time for policymakers to act.