- Stocks extended losses from late last week as investors were unsettled by Fed policy intentions and wrangling in Washington over the budget and the debt ceiling.
- The Fed's Dudley said the pace of economic improvement is insufficient and too uncertain for the Fed to pull back now, but traders see a cut to bond purchases coming sooner or later.
- Apple gained 5% after weekend iPhone sales eclipsed analyst estimates (I, II), which also helped shares of Apple suppliers, and BlackBerry added 1% after getting a $9/share offer, but techs overall fared little better than other sectors.
- Treasurys continued to gain after last week's Fed decision, as the yield on the 10-year note fell to 2.707%.