Former Fed Chairman fears 'a dramatic contraction' in Chinese st

Former Fed Chairman fears \'a dramatic contraction\' in Chinese stocks
By Nick Godt, MarketWatch
Last Update: 4:19 PM ET May 23, 2007


NEW YORK (MarketWatch) -- U.S. stocks ended lower on Wednedsay, after an afternoon sell-off sparked by comments from former Federal Reserve Chairman Alan Greenspan, who said that he feared a dramatic contraction in the Chinese stock market.
Greenspan\'s remarks didn\'t spark a major sell-off but the market did lose some steam, said Jay Suskind, director of trading at Ryan Beck & Co.
We\'ve got light volumes and the market is a little tentative and nervous because of the strong market gains recently, he said. Greenspan could be a catalyst for investors to take some profit, but not much more.
According to reports, Greenspan told a teleconference he feared a dramatic contraction in Chinese stocks, even though global growth wouldn\'t necessarily be derailed by the move.
The Dow Jones Industrial Average ($INDU : Dow Jones Industrial Average
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Last: 13,525.65-14.30-0.11%

4:30pm 05/23/2007

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$INDU13,525.65, -14.30, -0.1%) finished down 14 points at 13,525, after earlier hitting a new record high of 13,609.
Weighing on the Dow were the likes of IBM (IBM : International Business Machines
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Last: 105.58-1.12-1.05%

8:11pm 05/23/2007

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IBM105.58, -1.12, -1.0%) , Intel (INTC : Intel Corporation
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Last: 22.67-0.32-1.39%

8:10pm 05/23/2007

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INTC22.67, -0.32, -1.4%) , and McDonald\'s (MCD : McDonald\'s Corporation
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Last: 51.57-0.93-1.77%

8:13pm 05/23/2007

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MCD51.57, -0.93, -1.8%) .
The Dow remained supported by Alcoa Inc. (AA : alcoa inc com
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Last: 40.37+1.42+3.65%

8:04pm 05/23/2007

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AA40.37, +1.42, +3.6%) , which rose 3.6%. Alcan (AL : Alcan Inc
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Last: 85.89+4.86+6.00%

8:04pm 05/23/2007

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AL85.89, +4.86, +6.0%) late Tuesday rejected the $27 billion hostile offer from the Dow-component. Alcan shares rose 6%.
The broad market has also remained supported by deal-making news