US STOCKS-Wall St falls to two-month low on Fed, China worries

Mon Jun 24, 2013 12:55pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* 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 1.3 pct, S&P 1.6 pct, Nasdaq 1.5 pct

By Ryan Vlastelica

NEW YORK, June 24 (Reuters) - U.S. stocks dropped to a two-month low 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.

Major indexes dropped 1 percent, with all 10 S&P 500 sectors solidly lower and 94 percent of stocks traded on the New York Stock Exchange declining. Energy and material shares were the weakest on the day.

"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 the S&P hits 1,550.

The Fed last week said that if the economy improves, it would start to reduce a stimulus program widely credited with fueling the market's 10 percent rally year to date. The comments were the catalyst for a major market decline, with the S&P posting its worst week in two months last week. Yields on 10-year Treasuries jumped to more than 2.6 percent, the highest level since August 2011.   Continued...