US STOCKS-Wall St extends losses on Fed, Chinese economy worries

Mon Jun 24, 2013 11:40am EDT
 
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* S&P 500 falls 5 percent over the past four sessions

* Energy, material shares plunge on uncertain growth outlook

* Tenet Health to buy Vanguard Health; Keynote to be bought

* Indexes off: Dow 1.5 pct, S&P 1.8 pct, Nasdaq 1.7 pct

By Ryan Vlastelica

NEW YORK, June 24 (Reuters) - U.S. stocks dropped more than 1 percent on Monday, extending a slide as investors worried about the impact on equities from the Federal Reserve's plan to exit its economic stimulus and a cash squeeze in China that could hurt its economy.

All 10 S&P 500 sectors were solidly lower, with 94 percent of stocks traded on the New York Stock Exchange and four-fifths of Nasdaq-listed shares falling. Energy and material shares were the weakest.

The S&P 500 has slumped 5 percent over the past four sessions and dropped below its 100-day moving average. Last week, it dropped decisively below its 50-day average, a sign that near-term momentum may be toward the downside.

"The Fed sparked some to start exiting equities, but now that's snowballing as everyone exits. It appears most people are moving to cash," said Tom Donino, co-head of trading at First New York Securities in New York, who added that the market may continue to fall until it hits 1,550.   Continued...