U.S. stocks took a pounding Tuesday after Monday's slump, as market confidence was eroded by the ongoing budget standoff in Washington.[Businesses Registration]

The Dow Jones Industrial Average dropped 159.71 points, or 1.07 percent, to 14,776.53 points. The Standard & Poor's 500-stock Index plunged 20.67 points, or 1.23 percent, to 1,655.45 points. The Nasdaq Composite Index plummeted 75.55 points, or 2.00 percent, to 3,694.83 points.

U.S. House Republicans continued to call for negotiations with Democrats on the federal funding bill and debt ceiling. "There's nothing on the table, and there's nothing off the table," House Speaker John Boehner said on Tuesday morning.

U.S. President Barack Obama said on Tuesday afternoon that, "My suggestion to the speaker has been and will continue to be: let's stop the excuses."

Meanwhile, the third-quarter earnings season unofficially kicked off with an earnings report from aluminum giant Alcoa after the closing bell. The former Dow component beat market expectations in both its earnings and revenues in the third quarter.[Hong Kong Company Formation & Registration]

Third-quarter earnings of S&P 500 companies are estimated to grow at 3.0 percent year on year, while revenue growth is forecast to be 2.6 percent, according to FactSet data.

The tech-rich Nasdaq underperformed the other two indices, [company registration in Hong Kong, Hong Kong company incorporation]dragged by several social media, including Facebook, Yelp and LinkedIn, whose shares took a big hit.