US STOCKS-China, Fed concerns cause futures to tumble

Mon Jun 24, 2013 8:12am EDT
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* Tenet Health to buy Vanguard Health for $4.3 bln

* Barrick Gold to lay off workers

* Keynote Systems to be acquired for $20 per share

* Futures off: Dow 142 pts, S&P 17.1 pts, Nasdaq 23 pts

By Chuck Mikolajczak

NEW YORK, June 24 (Reuters) - U.S. stock index futures fell on Monday after the S&P 500 suffered its worst weekly decline in two months on concerns the U.S. Federal Reserve's stimulus may be drawing to a close and a cash crunch in China that could slow even further its growth.

Banking shares in China tumbled to their biggest daily loss in almost four years after the People's Bank of China said banks needed to do a better job of managing their cash and lending as the central bank attempts to move the world's second largest economy away from credit-driven investment.

The S&P 500 has fallen 2.3 percent in June, putting the benchmark S&P index on track for its worst monthly performance since May 2012. The index is down 4.6 percent from its all-time closing high on May 21.

Concerns the Fed may be planning to reduce its stimulus pushed up yields on 10-year Treasuries to 2.6 percent, its highest level since August 2011.   Continued...