(USA TODAY)Spooked by worries of a less-friendly Federal Reserve, rising interest rates and renewed China fears, the stock slide intensified Monday, pushing the broad market down more than 5 percent …
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(USA TODAY)Spooked by worries of a less-friendly Federal Reserve, rising interest rates and renewed China fears, the stock slide intensified Monday, pushing the broad market down more than 5 percent from its peak and into "pullback" territory for the first time since November.Wall Street's continued slump raises the question of whether the early-summer swoon is nearing an end or if bigger losses lay ahead.Investors continue to fret over the coming transition to less market support from the Fed, which has hinted recently that it plans to slow its $85 billion in monthly purchases of bonds later this year if the economy keeps improving. That unconventional policy, in place since 2008, has kept borrowing rates low and goosed asset prices. Investors fear the economy will suffer a relapse without the Fed's steroid-like stimulus and the recent surge in the 10-year U.S. Treasury bond to its highest level in nearly two years.Adding to investor angst: A credit crunch in China has raised fears that its once-booming growth will continue to slow.Those worries are to blame for a 1.2 percent drop to 1573 for the Standard & Poor's 500-stock index Monday, which pushed the index down 5.8 percent from its May 21 high of 1669.The 5 percent-plus drop, the common definition of a pullback, is the 18th in the current bull market that began in March 2009 but the first since late last year, says Bespoke Investment Group. The average pullback: 8.3 percent.Investor image