US STOCKS-Wall St falls as uncertainty grows over gov't shutdown
* Debt ceiling deadline draws closer
* Wall St's fear gauge CBOE VIX highest since June
* BlackBerry shares up on interest from strategic buyers
* Indexes off: Dow 0.7 pct, S&P 500 0.6 pct, Nasdaq 0.8 pct
By Angela Moon and Julia Edwards
NEW YORK, Oct 7 (Reuters) - U.S. stocks fell on Monday, extending their two-week decline, as the ongoing U.S. government shutdown kept investors jittery, with no sign politicians were willing to relax positions over the debt ceiling or budget impasse.
But major U.S. stock indexes came off their lows by the afternoon after the Dow Jones industrial average fell more than 150 points.
Reflecting a rise in the level of investor anxiety, the CBOE Volatility index VIX, Wall Street's so-called fear gauge, jumped 8.8 percent to 18.22, its highest since late June.
"Thus far, investors have felt assured that they are watching the re-run of an old cliffhanger movie, but the rising frequency of the replay has instilled a sense of deja-vu," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York. Continued...