NO COMPROMISE: The Standard & Poor's 500 index dropped to its lowest level in a month as few signs emerged of a deal to end the U.S. government shutdown and raise the nation's borrowing limit.

SIGNS OF TENSION: In a further sign of increasing tension, the VIX index, which rises when investors are getting more concerned about stock fluctuations, climbed to its highest in more than three months.

TOY TOWN WOES: Toy makers Mattel and Hasbro slumped after Goldman Sachs predicted a tough holiday season for the companies. Mattel fell $1.40, or 3.3 percent, to $41.15. Hasbro dropped 80 cents, or 1.7 percent, to $46.63.