US STOCKS-Wall Street gives up 2018 gains amid tech selloff, trade fears

(Updates to late afternoon, changes byline)

* All 3 major indexes in negative territory for 2018

* S&P 500, Dow break below 200-DMAs

* Dow hits lowest intraday level since Nov 15

* Amazon drops after fresh Trump Twitter attacks

* Indexes down: Dow 2.95 pct, S&P 3.13 pct, Nasdaq 3.59 pct

By Stephen Culp

NEW YORK, April 2 (Reuters) - Wall Street shares nosedivedon Monday, with the Dow falling to its lowest level of the yearand the S&P 500 and Nasdaq each poised for the biggest dailypercentage drop since February 8, as investors fled technologystocks and trade war fears were stoked anew.

The S&P 500 and the Dow Jones Industrial Average dippedbelow their 200-day averages driven by a drops in Amazon.com, Tesla, Microsoft, among others,sidelining the retaliatory trade measures China unveiled onSunday.

"I think this is still primarily a tech-led selloff and whatwe've learned over the past two weeks is just how overweightinvestors were in technology," said Nicholas Colas, co-founderof Datatrek Research in New York. "Now there is a fundamentalreset on how much tech exposure investors are willing to bear."

"(I don’t think it is) primarily related to China. Thetariff war has been a concern for a couple of weeks. Theresponse was probably more muted than most thought," said Colas.At 2:43 p.m. ET, the Dow Jones Industrial Average fell711.82 points, or 2.95 percent, to 23,391.29, the S&P 500lost 82.63 points, or 3.13 percent, to 2,558.24 and the NasdaqComposite dropped 253.79 points, or 3.59 percent, to6,809.65.

Amazon.com was the biggest drag on the S&P 500, down 5.9 percent, as President Donald Trump launched hislatest in a series of twitter attacks on the online retailer.

All 11 major sectors of the S&P 500 were in negativeterritory.

The S&P 500 Technology index was down 3.5 percent. Thetech-laden Nasdaq was dragged lower by Microsoft, Intel, Apple Inc, Facebook and Alphabet.

Shares of Tesla Inc were down 5.2 percent after thecompany was reported to be making 2,000 Model 3s per week,missing its 2,500 target.

The electric automaker's losses extend last week's near14-percent decline as investigations of a fatal California crashand a Moody's credit downgrade weighed on the stock.

Humana Inc shares were up 3.2 percent on news thatthe health insurer was in talks with Walmart to expandtheir partnership or to potentially be acquired by the retailer. Walmart stock fell 4.5 percent on thenews.

U.S. Treasury prices gained as investors sought safety aheadof Friday's closely-watched jobs report.

Declining issues outnumbered advancing ones on the NYSE bya 4.81-to-1 ratio; on Nasdaq, a 4.50-to-1 ratio favoreddecliners.(Additional reporting by Megan DaviesEditing by Chizu Nomiyama)