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

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

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* Huawei CFO arrest seen escalating U.S.-China tradetensions

* All 11 major S&P sectors drop, with financials biggestdrag

* Lower oil prices hit energy stocks; VIX at highest sinceOct 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 IndustrialAverage slipped back to losses for the year on Thursday, as U.S.stocks fell on mounting worries of slowing global growth after afresh twist in China-U.S. tensions as well as lower oil pricesand U.S. bond yields.

The arrest of Chinese smartphone maker Huawei TechnologiesCo Ltd'sHWT.UL chief financial officer at the request of theUnited States cast fresh doubts over the prospect of Beijing andWashington striking a deal on trade tariffs in their 90-daytruce period. urn:newsml:reuters.com:*:nL1N1YA1YR

"Markets are extremely sensitive to any news regardingtrade. The potential slowdown in global growth is also somethingthe markets are pricing in," said Massud Ghaussy, senior analystat 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 offtheir session lows. The two indexes and the Nasdaq had tumbledmore than 3 percent each on Tuesday. urn:newsml:reuters.com:*:nL4N1YB4VM

Optimism after the trade truce over the weekend boosted WallStreet on Monday, extending a rally from last week when theFederal Reserve signaled a slower pace of interest rate hikes.

But that optimism faded on Tuesday and, along with a drop inlonger-dated U.S Treasury yields, triggered a slide in equitiesthat continued on Thursday. Markets were closed on Wednesday.

The benchmark 10-year Treasury yield held at three-monthlows 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 ofjob 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 inequities," said Ghaussy.

Crude oil prices fell after an OPEC meeting in Vienna overproduction policy ended without a decision. Earlier the groupsignaled 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 thetrade-sensitive industrials .SPLRCI 2.07 percent.

The biggest drag came from a 2.90-percent slump infinancials .SPSY as bond yields fell and bets of a rate hikewere pushed lower.

At 1:02 p.m. ET, the .DJI was down 450.24 points, or 1.80percent, 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 followedbarometer of expected near-term volatility for the S&P, jumpedto its highest since Oct. 29.

Apple IncAAPL.O fell 1.8 percent and was the biggest dragon the S&P and the Nasdaq, while Boeing Co'sBA.N 4.5 percentdecline weighed the most on the Dow.

Gains in Facebook IncFB.O , Google-parent Alphabet IncGOOGL.O and Netflix IncNFLX.O kept the communicationservices sector .SPLRCL flat.

Declining issues outnumbered advancers for a 3.38-to-1 ratioon the NYSE and a 2.20-to-1 ratio on the Nasdaq.

The S&P index recorded two new 52-week highs and 70 newlows. The Nasdaq recorded eight new highs and 337 new lows. (Reporting by Shreyashi Sanyal in Bengaluru; Editing bySaumyadeb Chakrabarty and Sriraj Kalluvila) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;Reuters Messaging:Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

This article appears in: Stocks , World Markets , Politics
Referenced Symbols: AAPL ,

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