* S&P 500 breaks below 200-DMA; Dow down 500 pts
* Humana up after report Walmart discussing tie-up,acquisition
* Amazon falls after Trump again targets the online giant
* Indexes down: Dow 2.08 pct, S&P 2.21 pct, Nasdaq 2.38 pct(Updates to early afternoon)
By Sruthi Shankar
April 2 (Reuters) - A selloff in technology majors deepenedon Monday, wiping out the tech-heavy Nasdaq index's gains forthe year and pushing the benchmark S&P 500 below a closelywatched technical level for the first time in nearly two months.
All the 11 major S&P sectors fell, with markets also comingunder pressure from renewed fears of a global trade war after
Amazon dropped more than 4 percent after PresidentDonald Trump launched his latest attack over the pricing of theonline retailer's deliveries through the
"A reassessment of technology as well as what the tradeissues might mean for exporting
"The president continues to attack Amazon. Facebook hasn'tdone a great job of explaining the problems they've had."
Other "FANG" members were also lower. Facebook wasdown 1.96 percent, while Netflix and Google-parentAlphabet were down between 3 percent and 4 percent.The technology index was down 2.7 percent.
Tesla shares pared some early losses after a reportthat the electric car maker's crucial Model 3 sedan productionwould be a big jump from earlier numbers but could still fail tomeet the company's 2,500 per week target.
At 12:55 p.m. ET, the Dow Jones Industrial Averagewas down 502.3 points, or 2.08 percent, at 23,600.81.
The S&P 500 was down 58.35 points, or 2.21 percent,at 2,582.52, falling below its 200-day moving average for thefirst time since during a market sell-off in early February.
The Nasdaq Composite was down 167.98 points, or 2.38percent, at 6,895.47. The index was down 0.20 percent for theyear.
"Failure to hold the 200-day (moving average on S&P 500) hasput downward pressure on the market," said Ryan Larson, head of
"As fundamentals tend to take a back seat, technicals are afew of the indicators that people hold on to in period ofextreme volatility."
Among a few bright spots, Humana jumped 4.4 percentReuters reported Walmart was in early-stage talks withthe health insurer about developing closer ties, withacquisition discussed as one possibility.
Walmart fell 3.8 percent. UnitedHealth rose 1.6percent, one of the two Dow Industrials trading higher in thesession.
Declining issues outnumbered advancers for a 3.74-to-1 ratioon the downside and for a 3.63-to-1 ratio on the Nasdaq.
The S&P 500 index showed two new 52-week highs and 25 newlows, while the Nasdaq recorded 37 new highs and 134 new lows.(Reporting by Sruthi Shankar in Bengaluru; additional reportingby Kate Diguid in