<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD class=datestamp>02/27/2007 - Updated 3:34 PM ET</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD class=mwNormal>
</TD></TR><TR><TD><?xml version="1.0" encoding="UTF-16"?><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0 xmlns:Spaces="foo"><TBODY><TR><TD><TR><TD class=mwinside-head>U.S. stocks dive on China jitters</TD></TR><TR><TD class=mwinside-head>Dow drops 500 points as Shanghai slide spooks global markets</TD></TR><TR><TD><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD>
</IMG></TD></TR><TR><TD>By Nick Godt, MarketWatch</TD></TR></TBODY></TABLE></TD></TR><TR><TD class=mwinside-copy>
NEW YORK (MarketWatch) -- U.S. stocks plunged over 500 points on Tuesday, with the Dow Jones Industrial Average dropping 200 points in one minute around 3 p.m. before recovering some ground, sending the blue-chip average towards its worst one-day loss in over five years. </TD></TR><TR><TD class=mwinside-copy>
Concerns that tighter credit conditions in China and Japan might dampen global growth first sent Shanghai sliding 9% overnight before the sell-off spread to other markets.</TD></TR><TR><TD class=mwinside-copy>
After sliding all day, U.S. stocks seemed to fall off a cliff in the afternoon, as data providers failed to keep up with selling programs, noted Stephen Sachs, head of trading at Rydex Investments. </TD></TR><TR><TD class=mwinside-copy>
"Right now, there's not even a flight to quality into gold or the Swiss franc, which tells me that we're closer to the beginning than to the end of this," Sachs said.</TD></TR><TR><TD class=mwinside-copy>
The VIX, a gauge of market volatility, spiked 70% on Tuesday "which could cause a lot of serious pain" among investors, who'd been betting on quiet waters since last summer, Sachs </TD></TR></TBODY></TABLE>
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