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US STOCKS-Wall Street tumbles on tech sector, trade war worries

Mon, 02nd Apr 2018 21:41

(Updates to market close)

* All three major indexes in negative territory for 2018

* S&P 500, Dow close below 200-DMAs for first time sinceBrexitvote

* Amazon drops after fresh Trump Twitter attacks

* Indexes down: Dow 1.9 pct, S&P 2.23 pct, Nasdaq 2.74 pct

By Stephen Culp

NEW YORK, April 2 (Reuters) - Wall Street shares plunged onMonday as investors fled technology stocks amid resurgent tradewar worries, with key indexes trading below their 200-day movingaverages and the S&P 500 closing below that pivotal technicallevel for the first time since Britain's vote to leave theEuropean Union in June 2016.

The first trading day of the second quarter began with abroad selloff concentrated in the technology and consumerdiscretionary sectors, as losses by Amazon.com, Teslaand Microsoft, among others, took center stagefrom retaliatory trade measures China unveiled on Sunday.

"It’s more complicated than just a tech selloff. What'shurting everything is that the S&P went through its 200-daymoving average," said Brian Battle, director of trading atPerformance Trust Capital Partners in Chicago. "That attractsmomentum sellers and they don't care what the fundamentals are."

The Dow Jones Industrial Average fell 458.92 points,or 1.9 percent, to 23,644.19 after dipping below its 200-daymoving average. The S&P 500 fell 58.99 points, or 2.23percent, to 2,581.88 and the Nasdaq Composite dropped193.33 points, or 2.74 percent, to 6,870.12.

Amazon.com was the biggest drag on the S&P 500,down 5.2 percent, as President Donald Trump continued histwitter attacks on the online retailer.

All 11 major sectors of the S&P 500 closed lower, with thebiggest losses seen by the consumer discretionary andtechnology indexes, which were down 2.8 percent and2.5 percent, respectively.

The tech-heavy Nasdaq was dragged lower by Microsoft, Intel, Apple Inc, Facebookand Alphabet.

Shares of Tesla Inc ended the day down 5.1 percentafter the company was reported to be making 2,000 Model 3s perweek, 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.

Health insurer Humana Inc's shares closed up 4.4percent on news it was in talks with Walmart to expandtheir partnership or possibly be acquired by the retailer. Walmart stock fell 3.8 percent.

U.S. Treasury yields fell to two-month lows asinvestors fled sliding stocks for safety ahead of Friday'sclosely watched jobs report.

Declining issues outnumbered advancing ones on the NYSE by a4.17-to-1 ratio; on Nasdaq, a 4.14-to-1 ratio favored decliners.

Volume on U.S. exchanges was 7.71 billion shares, comparedto the 7.29 billion average over the last 20 trading days.(Additional reporting by Sinead CarewEditing by James Dalgleish)

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