NEW YORK (TheStreet) -- U.S. stocks on Tuesday tumbled the most in six weeks on concerns the government will default on its debt obligations.
The government shutdown, which began Tues. Oct. 1, has forced investors to gauge political sentiment along with economic factors. The near stalemate among political leaders threatens to adversely impact corporate outlooks as the third-quarter earnings season gets underway.
The S&P 500 closed down 1.23% to 1,655.45 to extend its decline since the shutdown began to 1.1%. The Dow Jones Industrial Average slipped 1.1% to 14,776.53 while the Nasdaq lost 2% to 3,694.83.
Alcoa (AA), the largest U.S. aluminum producer, posted profits that beat analyst forecasts. Shares, which closed at $7.94, were rising 2% in after-hours trading.
YUM! Brands (YUM) was tumbling in after-hours trading after the owner of KFC, Pizza Hut and Taco Bell reported earnings that fell short of expectations as same stores sales fell 11% in the quarter ended Sept. 7. Sales from the company's Chinese operations also dropped 11% compared to the same period a year ago.
Monster (MNST) was the largest percentage gainer on the S&P 500 after BMO analyst Amit Sharma said the company known for its energy drinks saw sales rise 10% in September. Shares popped 3.8% to $53.59.
Tripadvisor (TRIP) was the worst performer on the S&P 500 as it led a bevy of tech stocks that sank Tuesday on the back of investor worries that Congress won't reach a debt ceiling deal. Shares lost 5.5% to $71.70.