US STOCKS-Wall St falls sharply on worries about banks

jueves 29 de septiembre de 2016 16:26 GYT

* Qualcomm and NXP Semi surge on report of tie-up talks

* Apple drops on Barclays price target cut

* Indexes end down: Dow 1.07 pct, S&P 0.93 pct, Nasdaq 0.93 pct (Updates to close)

By Noel Randewich

Sept 29 (Reuters) - Wall Street dropped on Thursday, weighed down by Apple as well as selling in Wells Fargo, Citigroup and other major banks as investors worried about the health of Deutsche Bank.

The S&P 500 financial index declined 1.49 percent after Bloomberg reported that some hedge funds have withdrawn excess cash and positions held at the German lender.

Growing concerns over the stability of Germany's biggest bank have pushed its shares to record lows and its U.S.-listed stock on Thursday tumbled 6.7 percent.

"This Deutsche Bank story is really casting a very long shadow over equity markets," said Peter Kenny, senior market strategist at Global Markets Advisory Group, in New York. "In some respects, it speaks to fears over large money-center banks having serious problems, and the last time we had that conversation was the financial crisis."

Adding to negative sentiment in the banking sector, Wells Fargo & Co lost 2.07 percent after U.S. lawmakers rebuked CEO John Stumpf over his handling of sales abuses.   Continuación...