Stocks Fall With China in Bear Market as Bonds Pare Drop

U.S. stocks fell after Chinese equities entered a bear market on concern a cash crunch will hurt growth. Treasuries pared losses on speculation investors overreacted to a possible reduction of central bank stimulus.

The Standard & Poor’s 500 Index sank 1.2 percent at 4 p.m. in New York, trimming an earlier drop of 2 percent. Ten-year Treasury note yields rose one basis point after earlier jumping to the highest level since 2011. The CSI 300 Index of China’s biggest companies tumbled 6.3 percent, the most since August 2009 and taking its drop from this year’s high to more than 20 percent. Copper fell to the lowest level in almost three years and aluminum extended the longest slump since 1987.