Stocks Drop 1% on Fed, China Fears; Dow Falls 200, Vix Jumps 10%

Published: Monday, 24 Jun 2013 | 10:50 AM ETBy: JeeYeon Park | CNBC.com Writer

Stocks eased off their lows but were still sharply in the red across the board Monday, with major averages extending steep losses from the previous week, amid worries the Federal Reserve may start to wind down its stimulus measures may be winding down and fears over a possible credit squeeze in China.

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"We're currently in a risk off environment that has built up over the recent days," said Michael Sheldon, chief market strategist at RDM Financial Group. "Here in the U.S., it will be important to watch the economic data over the next few months—if the economy can be supported with higher interest rates, investors should return to equities. But if the economy is unable to stand on its own and the Fed still wants to take away the punch bowl, that could spell more difficulty for the equity markets."

Read more: http://www.cnbc.com/id/100838598