US STOCKS-Economy concerns, commodities drag Wall St lower

* Fresh concerns over economy spark selloff

* Lower commodity prices hit resource shares

* Goldman Sachs downgrades Wal-Mart, stock slides

* Dow off 2.4 pct, S&P off 2.7 pct; Nasdaq off 2.9 pct * For up-to-the-minute market news click [STXNEWS/US] (Updates to midafternoon, changes byline)

By Leah Schnurr

NEW YORK, June 15 (Reuters) - U.S. stocks fell broadly on Monday as regional manufacturing data dented optimism about the economy's health and resource shares fell alongside commodity prices.

Economists had expected to see slight improvement in the New York Fed's "Empire State" index, but the survey showed the factory sector shrank at a more severe rate in June than the previous month. After a series of signs the economy may be stabilizing, investors are looking for more definitive signals of its improving health. For details, see [ID:nN15186978].

"The New York manufacturing index hinted that the improvement in economic data may be slowing down after the rapid recovery we've seen over the past one to three months," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

The stronger U.S. dollar helped pull the price of oil below $70 a barrel from a near eight-month high. The decline hit energy companies' shares, including Chevron (CVX.N: Quote, Profile, Research), down 3 percent at $70.50. The S&P energy index slid 3.3 percent.