* Bankers say the Chinese government has curbed lending behavior * manufacturers, the Chinese issue of falling commodity inventories * IBM spark technology's wild victory forecast disappointing 2010 * Dow and S & P 500 months. 5 pct; Nasdaq off 1.
Up-7 pct *to-the-
Minute market news, click 【STXNEWS/US](
Update to late afternoon, change byline)
January 20, Ellis Mnyandu, New York (Reuters)-U. S.
On Wednesday, amid concerns that China's bank lending restrictions could jeopardize the global economic recovery and IBM's prospects, stocks suffered their worst fall in 2010, undermining optimism about tech stocks.
State media and bank sources said that after the credit boom earlier, Chinese authorities had instructed some major banks to limit lending for the rest of the month.
See for details 【ID:nTOE60J09N].
China is the third largest economy in the world.
The largest economy may limit its economic expansion and damage shares in natural resources companies, including Alcoa (AA. N), off 2.
$ 6%, $15.
20, and large manufacturers of Caterpillar (CAT. N), down 2.
$ 2%, $59. 60.
S & P material industry index.
GSPM fell 2%.
"This is actually a direct result of concerns about China's credit crunch," said Peter Kenny, managing director of Knight stock market in Jersey City, New Jersey, New Jersey.
"From the perspective of China's real push for global growth, you will react to the prospect of this slowdown in growth.
Investors have been counting on emerging economies like China to support the global economic recovery, so any restrictive policy could be a setback for investors, their bet on a sustainable rebound recently pushed the S & P 500 to 15-month highs.
The Dow Jones industrial average. DJI slid 159. 38 points, or 1.
49%, at 10,566. 05.
S & P 500. SPX dropped 16. 79 points, or 1.
46%, at 1,133. 44.
Nasdaq Composite Index. IXIC lost 39. 34 points, or 1.
70%, at 2,281. 06.
The Dow Jones index and the Nasdaq index fell to their biggest daily newspaper on the evening of October, and the S & P 500's biggest drop on the evening of November, reaching a fresh-keeping month a day-
The Democratic Party will lose its Senate seat at a new high in the next month.
Shares of International Commercial Machinery Company (IBM. N)
Shares of a major technology service company fell by 3.
$ 8% to $129.
Investors believe the 2010 outlook released late Tuesday suggests profit growth could slow. [ID:nSGE60J0I7].
The biggest drag on the Dow is IBM, followed by energy company Chevron (CVX. N), down 2.
$ 1%, $78. 05.
United Technology Corporation (diversified manufacturer)UTX. N)
Another component of the Dow Jones index fell by 1.
$ 8%, $70. 92.
S & P energy index. GSPE dropped 2. 1 percent. A run-up in the U. S.
Priced at commodity pricesU. S. front-
Crude oil CLc1 fell 2% to $77 a month. 34 a barrel. The U. S. dollar index . DXY was up 1.
Worried about Greece's ability to refinance the deficit, Greece's exchange rate for major currencies was 1%.
On the Nasdaq, Apple (AAPL. O)
Was the biggest drag, down nearly 2% to $210. 05.
Other tech giants such as Google cut prices by more than 1%. GOOG. O), Microsoft (MSFT. O)and Cisco (CSCO. O).
Health care stocks led on Tuesday with signs that health care reform could face new hurdles in Congress, but fell on Wednesday as some investors booked profits.
Morgan Stanley medical payer index. HMO dropped 2.
5% and Index of pharmaceutical companies. DRG fell 0. 6 percent.
For the United States, on a busy revenue dayS.
Wells Fargo Bank (WFC. N)and U. S. Bancorp (USB. N)
With the help of the recent acquisition, quarterly earnings were forecast, while Bank of America Corp. , the bigger rival, received a boost from Merrill Lynch.
Bank of America (BAC. N), the top U. S.
It is reported that banks divided by assetsthan-
But the company says its credit problems have begun to stabilize. [ID:nN20148741]. U. S.
Shares of Hezhong Bank rose month.
$ 3% to $25.
05 and Bank of America got 0.
$ 2% to $16. 35.
KBW bank index. BKX rose 1. 3 percent. (
Supplementary Report by Rodrigo Campos;
Edit Kenneth Barry)