US stock markets settled lower on Wednesday as investors fretted over the latest news coming out of Washington.

The Dow Jones Industrial Average fell 372.82 points or 1.78 percent to settle at 20,606.93. NASDAQ 100 index declined 143.89 points or 2.51 percent to close at 5,580.55. The broader S&P 500 index dropped 43.64 points, or 1.82 percent, to 2,357.03.