US STOCKS-Fed policy, China growth worry send Wall St lower

Mon Jun 24, 2013 10:25am EDT
 
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* Tenet Health to buy Vanguard Health for $4.3 bln

* Mining stocks drag as gold falls

* Keynote Systems to be acquired for $20 per share

* Indexes off: Dow 1.1 pct, S&P 1.38 pct, Nasdaq 1.35 pct

By Chuck Mikolajczak

NEW YORK, June 24 (Reuters) - U.S. stocks extended losses on Monday, falling more than 1 percent after the S&P 500 index's biggest weekly decline in two months, as investors repriced shares in the wake of the Federal Reserve's plans to withdraw its stimulus.

Investor sentiment also was hurt by a cash crunch in China, which could further slow Chinese growth. Markets in Shanghai and Hong Kong suffered heavy losses..

Concerns the Fed may be planning to reduce its stimulus pushed up yields on 10-year Treasuries to more than 2.6 percent, its highest level since August 2011, prompting strength in the dollar, which in turn dented commodity prices.

The NYSE Arca gold bugs index lost 3.2 percent and the PHLX gold/silver sector index fell 2.9 percent.   Continued...