NEW YORK, March 15 - Mid- and small cap stocks fell on Monday as a drop in oil prices hurt commodity and energy-related companies.
The overall mood was bearish as investors fretted about a potential credit tightening in China that would slow global economic growth.
Oil prices fell nearly 2 percent to below $80 a barrel, pressured by a stronger dollar and concerns any policy tightening by China might curb energy demand in the world's second-largest oil consumer.
"In general, small and midcaps tend to be more volatile. There has been a lot of focus on China and its impact on currency and oil today, which is really affecting the whole landscape," said Eric Marshall, director of research at Hodges Capital Management in Dallas, Texas.
The top four decliners on the midcap sector were energy companies, including Patriot Coal (PCX.N) down 6 percent at $19.05, Superior Energy (SPN.N) off 5 percent at $20.72, Helix Energy (HLX.N) down nearly 6 percent at $13.76 and Arch Coal (ACI.N), 4.6 percent lower at $24.18. The S&P energy index .4GSPE declined 2.9 percent.
In the small-cap sector, banks edged lower on a new financial regulation bill by the U.S. Senate Banking Committee Chairman, Christopher Dodd, who unveiled the bill to revamp U.S. financial rules that would place a consumer protection agency within the Federal Reserve. The legislation also would give the central bank new powers over non-bank financial firms. For details, see [ID:nN14165412]
South Financial Group Inc (TSFG.O) led losses, falling more than 7 percent to $82 cents.
Sterling Bancorp (STL.N) was also off nearly 7 percent to $8.32 and the Banking index .BANK fell 1.9 percent.
The S&P MidCap 400 index .MID declined 0.6 percent after midsized companies posted their best winning streak in almost two decades on Friday.
The S&P SmallCap 600 index .SML dipped 0.6 percent.
In comparison, the benchmark S&P 500 .SPX was down 0.3 percent.
The overall mood was bearish as investors fretted about a potential credit tightening in China that would slow global economic growth.
Oil prices fell nearly 2 percent to below $80 a barrel, pressured by a stronger dollar and concerns any policy tightening by China might curb energy demand in the world's second-largest oil consumer.
"In general, small and midcaps tend to be more volatile. There has been a lot of focus on China and its impact on currency and oil today, which is really affecting the whole landscape," said Eric Marshall, director of research at Hodges Capital Management in Dallas, Texas.
The top four decliners on the midcap sector were energy companies, including Patriot Coal (PCX.N) down 6 percent at $19.05, Superior Energy (SPN.N) off 5 percent at $20.72, Helix Energy (HLX.N) down nearly 6 percent at $13.76 and Arch Coal (ACI.N), 4.6 percent lower at $24.18. The S&P energy index .4GSPE declined 2.9 percent.
In the small-cap sector, banks edged lower on a new financial regulation bill by the U.S. Senate Banking Committee Chairman, Christopher Dodd, who unveiled the bill to revamp U.S. financial rules that would place a consumer protection agency within the Federal Reserve. The legislation also would give the central bank new powers over non-bank financial firms. For details, see [ID:nN14165412]
South Financial Group Inc (TSFG.O) led losses, falling more than 7 percent to $82 cents.
Sterling Bancorp (STL.N) was also off nearly 7 percent to $8.32 and the Banking index .BANK fell 1.9 percent.
The S&P MidCap 400 index .MID declined 0.6 percent after midsized companies posted their best winning streak in almost two decades on Friday.
The S&P SmallCap 600 index .SML dipped 0.6 percent.
In comparison, the benchmark S&P 500 .SPX was down 0.3 percent.
