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US stocks tumbled Monday after China raised import duties on USA pork, apples and other products.

NEW YORK, April 2 (Reuters) - Wall Street shares plunged on Monday as investors fled technology stocks amid resurgent trade war worries, with key indexes trading below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since Britain's vote to leave the European Union in June 2016. The S&P 500 index and Nasdaq lost 2.2 and 2.7 percent each, falling into correction range, a 10-percent drop from their 52-week highs. The Nasdaq composite slumped 2.7 percent to 6,870.12.

The Russell 2000 index of smaller-company stocks sank 36.90 points, or 2.4 percent, to 1,492.53.

The S&P 500 slipped 3 points, or 0.1 percent, to 2,637.

Amazon AMZN.O dropped more than 4 percent after President Donald Trump launched his latest attack over the pricing of the online retailer's deliveries through the USA postal system and promised unspecified changes. The Nasdaq composite fell 19 points, or 0.3 percent, to 7,044.

China's tariffs on USA soybean exports led to bets that higher domestic reserves would lower food costs for meat producers such as Tyson Foods (TSN.N), Hormel (HRL.N), Sanderson Farms (SAFM.O) and Pilgrim's Pride (PPC.O), helping those stocks.

China raised import duties on a $3 billion list of US goods in response to USA tariffs on imported steel and aluminum.

We've been warning since early this year that stocks were getting ahead of themselves.




"There has been a lot of rhetoric surrounding trade wars for some time now, but the transformation of these threats into actions in recent days is alarming and is clearly roiling markets", said David Cheetham, chief market analyst at XTB.

Shares of e-commerce giant Amazon.com Inc.(AMZN) rose 1.3%.

Big-name tech companies like Microsoft fell more than the rest of the market Monday.

PRIME TARGET: Amazon fell another $70.84, or 4.9 percent, to $1,376.50. They forecast the largest group by weighting in the S&P 500 to increase profit by 25 percent in the period, with chipmakers pushing profits higher by 31 percent.

A scathing attack against Amazon by US President Donald Trump over the weekend led to shares diving over five per cent, wiping over $35bn (£25bn) from its market value. The industrials index's 1.8 percent slide was the most among the 11 major S&P sectors, as has been the case since the trade war fears surfaced.

Asia stocks rose Monday as investors looked beyond the latest trade developments to continue a fragile uptick in global equities. Brent crude, used to price worldwide oils, slid $1.52, or 2.2 percent, to $67.82 a barrel in London.

The Dow Jones Industrial Average (DJI) is well off its intraday lows, but is still in negative territory as China's tariff announcement sparks sharp losses from blue chips Boeing (BA) and Caterpillar (CAT). Despite its recent losses, Amazon stock is still up about 18 percent in 2018.


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