US STOCKS-S&P, Dow lose 2018 gains as global growth fears grip Wall St

Reuters

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    * Huawei CFO arrest seen escalating U.S.-China trade
tensions
    * All 11 major S&P sectors drop, with financials biggest
drag
    * Financials hit by drop in bond yields and bets on rate
hikes
    * Lower oil prices hit energy stocks; VIX at highest since
Oct 30
    * Indexes drop: Dow 1.80 pct, S&P 1.45 pct, Nasdaq 0.56 pct 

 (Adds comments, updates to early afternoon)
    By Shreyashi   Sanyal
    Dec 6 (Reuters) - The S&P 500 and the Dow Jones Industrial
Average slipped back to losses for the year on Thursday, as U.S.
stocks fell on mounting worries of slowing global growth after a
fresh twist in China-U.S. tensions as well as lower oil prices
and U.S. bond yields.
    The arrest of Chinese smartphone maker Huawei Technologies
Co Ltd's  HWT.UL  chief financial officer at the request of the
United States cast fresh doubts over the prospect of Beijing and
Washington striking a deal on trade tariffs in their 90-day
truce period.  urn:newsml:reuters.com:*:nL1N1YA1YR
    "Markets are extremely sensitive to any news regarding
trade. The potential slowdown in global growth is also something
the markets are pricing in," said Massud Ghaussy, senior analyst
at Nasdaq IR Intelligence in New York.
    The Dow and the S&P were down more than 1.5 percent,
tracking 0.4 percent losses for the year despite coming well off
their session lows. The two indexes and the Nasdaq had tumbled
more than 3 percent each on Tuesday.  urn:newsml:reuters.com:*:nL4N1YB4VM
    Optimism after the trade truce over the weekend boosted Wall
Street on Monday, extending a rally from last week when the
Federal Reserve signaled a slower pace of interest rate hikes.
    But that optimism faded on Tuesday and, along with a drop in
longer-dated U.S Treasury yields, triggered a slide in equities
that continued on Thursday. Markets were closed on Wednesday.
    The benchmark 10-year Treasury yield held at three-month
lows as traders bet on fewer rate hikes after data showed U.S.
trade deficit hit a 10-year high in October and that the pace of
job growth was moderating.  US/   urn:newsml:reuters.com:*:nL1N1Y91Q8
    "We have a repricing of risk as shown in rising bonds
(prices), but is obviously adding to the negativity in
equities," said Ghaussy.
    Crude oil prices fell after an OPEC meeting in Vienna over
production policy ended without a decision. Earlier the group
signaled it may agree to a smaller cut than expected.  O/R 
    All the 11 major S&P sectors were in the red. Technology
 .SPLRCT  fell 0.90 percent, energy  .SPNY  3.27 percent and the
trade-sensitive industrials  .SPLRCI  2.07 percent.
    The biggest drag came from a 2.90-percent slump in
financials  .SPSY  as bond yields fell and bets of a rate hike
were pushed lower.
    At 1:02 p.m. ET, the  .DJI  was down 450.24 points, or 1.80
percent, at 24,576.83, the S&P 500  .SPX  was down 39.13 points,
or 1.45 percent, at 2,660.93 and the Nasdaq Composite  .IXIC 
was down 40.15 points, or 0.56 percent, at 7,118.28.
    The CBOE Volatility Index  .VIX , the most widely followed
barometer of expected near-term volatility for the S&P, jumped
to its highest since Oct. 29.
    Apple Inc  AAPL.O  fell 1.8 percent and was the biggest drag
on the S&P and the Nasdaq, while Boeing Co's  BA.N  4.5 percent
decline weighed the most on the Dow.
    Gains in Facebook Inc  FB.O , Google-parent Alphabet Inc
 GOOGL.O  and Netflix Inc  NFLX.O  kept the communication
services sector  .SPLRCL  flat. 
    Declining issues outnumbered advancers for a 3.38-to-1 ratio
on the NYSE and a 2.20-to-1 ratio on the Nasdaq.
    The S&P index recorded two new 52-week highs and 70 new
lows. The Nasdaq recorded eight new highs and 337 new lows.

 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by
Saumyadeb Chakrabarty and Sriraj Kalluvila)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;
Reuters Messaging:
Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

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