US STOCKS-Wall St sinks again as China retaliates on tariffs

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* China to impose tariffs on $60 bln of U.S. goods
* Apple drops 3.8% premarket, leads decline in tech stocks
* Trade tensions sink stocks, S&P 500 at 2.2% below record
levels
* Uber falls for second day after underwhelming IPO
* Futures drop: Dow 1.91%, S&P 1.94%, Nasdaq 2.57%

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By Sruthi Shankar and Amy Caren Daniel
May 13 (Reuters) - Wall Street's main indexes were set to
drop nearly 2% on Monday after Beijing announced plans to
retaliate with tariffs on U.S. goods, raising fears that another
round of tit-for-tat measures could push the U.S. economy toward
recession.
Futures pointed to an almost 500-point fall at the open for
the Dow Jones Industrial Average index .DJI , with Apple Inc
AAPL.O down 3.8% and chipmakers and manufacturers exposed to
China taking a hit.
China's finance ministry said on Monday it planned to impose
tariffs on $60 billion worth of U.S. goods, or a total of 5,140
products, from June 1, retaliating after U.S. moves last week.
"This just got messier and more expensive to the global
economy and until we get break here, markets are going to be
under pressure," said Art Hogan, chief market strategist at
National Securities in New York.
"Every increase in tariffs is a drag to the global economy
and if it drags the economy down, it will drag earnings down, so
stocks are going to react to that."
The S&P 500 .SPX on Friday racked up its worst weekly
decline since December, as Washington raised tariffs on Chinese
goods worth $200 billion to 25% from 10%. U.S. officials over the weekend sought promises of concrete
changes to Chinese law and Beijing said it would not swallow any
"bitter fruit" that harmed its interests. The tensions reverberated through global financial markets,
with the yield curve between three-month U.S. Treasury bills and
10-year notes inverting for the second time in less than a week
on Monday.
An inversion in the yield curve is seen as a classic signal
that a recession is coming. US/ U.S. equities hit record highs just two weeks ago on hopes
of a trade deal and a positive first-quarter earnings season.
The S&P 500 closed on Friday at about 2.2% below its all-time
high close.
As the trade dispute extends, investors expect tariffs to
increase corporate costs, lower profit margins and hinder the
ability of companies to plan or make capital expenditures.
.N/O
Tariff-sensitive Boeing Co BA.N declined 3.6% and
Caterpillar Inc CAT.N dipped 4.0%. Micron Technology Inc MU.O , Intel Corp INTC.O and
Qualcomm Inc QCOM.O fell between 2.9% and 4.2%. The
Philadelphia chip index .SOX ended last week down about 6%,
slashing its year-to-date gain to 28%.
At 8:44 a.m. ET, Dow e-minis 1YMc1 were down 495 points,
or 1.91%. S&P 500 e-minis ESc1 were down 56 points, or 1.94%
and Nasdaq 100 e-minis NQc1 were down 195.75 points, or 2.57%.
Uber Technologies Inc UBER.N was down 6.0%, after ending
down 7.6% on Friday in its first day of trading as a public
company in the most anticipated listing since Facebook Inc
FB.O .