US STOCKS-Wall St drops as anxious investors eye China

Mon Sep 28, 2015 5:21pm EDT
 
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* China industrial profits fall, stoking economy fear

* U.S. consumer spending rises more than expected in Aug

* Biotech stocks continue their fall

* Indexes end down: Dow 1.92 pct, S&P 2.57 pct, Nasdaq 3.04 pct (Adds detail on Valeant)

By Noel Randewich

Sept 28 (Reuters) - U.S. stocks finished sharply lower on Monday and were on track for their worst quarter in four years as investors worried about the health of China's economy and its potential impact on the timing of a U.S. interest rate increase.

The Nasdaq composite lost 3 percent and S&P 500 dropped more than 2 percent.

Much of the damage came from pharmaceutical and biotech stocks after Democratic lawmakers on Monday attacked "massive" price increases of two heart drugs from Canada's Valeant Pharmaceuticals International Inc, which tumbled 16.5 percent.

The Nasdaq biotechnology index fell 6 percent, its worst one-day drop since 2011, adding to losses from last week when Democratic presidential candidate Hillary Clinton criticized drug pricing.   Continued...