China slump, higher bond yields weigh on markets
Source: AP-Excite
By JOSHUA FREED
More signs of distress in China's economy and rising bond yields led to a broad sell-off in stocks Monday, leaving key market indexes down more than 5 percent from their record highs last month.
It was the first 5 percent decline - referred to on Wall Street as a "pullback" - since November.
Pullbacks that occur during bull markets tend to be "nasty and brutish" - but short, said John Manley, chief equity strategist at Wells Fargo Funds Management. He said it's common to get declines of 3 percent to 7 percent "as the market restores a reverence to risk to the investing public."
U.S. trading started with a slump Monday. The market recovered much of its loss, then fell back again. By the close of trading the big stock indexes were clinging to modest gains for the second quarter, which ends Friday.
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Specialist Peter Giacchi watches his screens as he works on the floor of the New York Stock Exchange, Monday, June 24, 2013. Traders in the U.S. dumped stocks, bonds and commodities, prompted by signs of distress in China's economy and worries about the end of the Federal Reserve bank's easy money policies. (AP Photo/Richard Drew)
