US STOCKS-Wall St falls 1 percent, weighed by commodity stocks
* Indexes down: Dow 1 pct, S&P 1.1 pct, Nasdaq 0.9 pct (Updates prices, adds comment)
By Rodrigo Campos
NEW YORK Jan 5 (Reuters) - U.S. stocks fell on Monday, dragged down by commodity-linked shares as crude prices fell to fresh 5-1/2 year lows and a strong dollar also weighed on metals prices.
Crude oil futures prices dropped to their lowest since May 2009 amid a global supply glut and lackluster demand. Russia's oil output hit a post-Soviet high last year, and Iraq's oil exports in December were highest since 1980.
The strength in the U.S. currency is putting even more pressure on dollar-denominated commodities. A measure of the greenback against a basket of major currencies hit its highest since December 2005.
The market fall is "driven quite a bit by the slump in energy prices," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.
He said aside from the positive effect it has on consumers, the plunge in energy could have a negative effect in other sectors of the market.
"You also have a very strong dollar," he said. "Multinationals will have their earnings decreased if they aren't fully hedged."
At 9:55 a.m. EST (1355 GMT) the Dow Jones industrial average fell 182.03 points, or 1.02 percent, to 17,650.96, the S&P 500 lost 22.41 points, or 1.09 percent, to 2,035.79 and the Nasdaq Composite dropped 42.11 points, or 0.89 percent, to 4,684.70. Continuación...