US stocks have tumbled in early trade with the government having days to resolve the political deadlock over the budget and debt before being forced to default on its bills.
After a weekend that saw no progress in talks between the White House and Republicans, an hour into Monday (local time) trade, the Dow Jones Industrial Average was down 71.70 points (0.47 per cent) at 15,165.41.
The broader S&P 500 lost 7.80 (0.46 per cent) to 1695.40, and the Nasdaq Composite gave up 13.15 (0.35 per cent) to 3778.72.
Investors still showed tentative hopes a deal would be reached by Thursday, the day the US Treasury says it will run out of adequate cash to pay its obligations, including debt service.
Global finance leaders have repeatedly warned a US debt default would generate unfathomable turmoil through the global financial system.
"It would mean massive disruption the world over," International Monetary Fund chief Christine Lagarde said on Sunday.
"And we would be at risk of tipping, yet again, into recession."
Netflix surged nearly three per cent after a report that it was negotiating to place a Netflix app on the set-top boxes of several cable providers.
Chip maker Micron Technology lost another 2.6 per cent after Friday's sharp fall as investors took profits following a sharp run-up.
Facebook shed nearly two per cent, while retail giant Walmart fell 1.2 per cent.
The bond market remained quiet despite the worries about the US budget and debt impasse.
The yield on the 10-year Treasury was marginally higher at 2.69 per cent, while the 30-year was at 3.75 per cent.
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