US STOCKS-Wall St drops as China data rattles investors
* China industrial profits fall, stoking economy fear
* U.S. consumer spending rises more than expected in Aug
* Biotech stocks continue their fall
* Indexes down: Dow 1.65 pct, S&P 2.23 pct, Nasdaq 2.72 pct (Updates to afternoon)
By Noel Randewich
Sept 28 (Reuters) - U.S. stocks fell sharply in afternoon trading on Monday and were set for their worst third-quarter performance in four years as investors worried about the health of China's economy and its potential impact on the timing of a U.S. interest rate increase.
The Nasdaq composite and S&P 500 both dropped more than 2 percent.
Much of the damage came from pharmaceutical and biotech stocks, including Allergan and Gilead Sciences, with the sector still bleeding a week after Democratic presidential candidate Hillary Clinton criticized drug pricing.
The Nasdaq biotechnology index fell 6 percent following its worst week in seven years. Among the S&P sectors, the health care index was the deepest decliner, down 3.66 percent. Continuación...