US STOCKS-China fears hand Wall St its worst day since 2011
* All 10 S&P sectors down; eight in the red for the year
* Energy stock hit as U.S. crude falls below $40/barrel
* Indexes down: Dow 3.1 pct, S&P 3.2 pct, Nasdaq 3.5 pct (Adds quote, updates volume)
By Chuck Mikolajczak
Aug 21 (Reuters) - Fears of a China-led global economic slowdown drove Wall Street to its steepest one-day drop in nearly four years on Friday and left the Dow industrials more than 10 percent below a May record.
Wall Street's selloff this week suggested investors are growing nervous about paying high prices for stocks at a time of minimal earnings growth, tumbling energy prices and an expected rate hike by the U.S. Federal Reserve that could gradually usher the end of almost a decade of easy money.
Stocks have seen few large moves this year, staying in a narrow range throughout 2015, but volatility spiked this month once China surprisingly devalued its currency. Weak Chinese manufacturing data on Friday, and another drop in China's stock market, rattled investors' nerves and led to Friday's tumble.
While this month's selloff has been swift, many analysts feel the declines may be close to being exhausted, with a turnaround possibly starting as soon as next week.
"You're definitely witnessing a perfect storm in terms of China timing, people on vacation that affects liquidity, and you've got a lot of questions on the Fed and people are obviously focused on oil," said Andrew Frankel, co-president of Stuart Frankel & Co in New York. Continuación...