US STOCKS-Wall Street sinks as tech sell-off resumes

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* August nonfarm payrolls rise by 1.37 mln
* Stay-at-home stocks lose ground again
* Shares of big U.S. lenders advance
* Indexes down: Dow 0.44%, S&P 1.28%, Nasdaq 2.79%

(Updates to market open)
By Medha Singh and Devik Jain
Sept 4 (Reuters) - Wall Street's main indexes extended
losses on Friday after plunging in the previous session as
technology stocks sold off again, overshadowing data showing a
steeper-than-expected drop in the unemployment rate in August.
The tech-heavy Nasdaq dropped 4% as mega-cap companies Apple
Inc AAPL.O , Microsoft Inc MSFT.O , Amazon.com Inc AMZN.O ,
Tesla Inc TSLA.O and Nvidia Inc NVDA.O slipped.
Earlier on Friday, the Labor Department's closely watched
employment report showed jobless rate fell to 8.4% from 10.2% in
July, steeper than economists' forecast of 9.8%. Nonfarm
payrolls however, increased less than expected last month.
Still, the data adds pressure on the White House and
Congress to restart stalled negotiations over the next
coronavirus relief package to lift the economy out of the worst
recession since the Great Depression.
"The data is consistent with an improving labor market that
is helping to support consumption, but remains a long way away
from pre-COVID-19 levels," said Sameer Samana, senior global
market strategist at Wells Fargo Investment Institute.
After climbing to record highs on the back of historic
stimulus and a narrow rally in heavyweight technology stocks,
the S&P 500 and Nasdaq suffered their worst day in nearly three
months on Thursday as investors booked gains.
Technology .SPLRCT , communication services .SPLRCL and
consumer discretionary .SPLRCD stocks fell the most among the
major S&P sectors. Beaten-down sectors including financials
.SPSY , industrials .SPLRCI and energy .SPNY bucked the
trend, rising between 0.4% and 1.0%.
Shares of rate-sensitive lenders .SPXBK rose 2.4% as the
benchmark 10-year US10YT=RR yield bounced off of a near
four-week low. US/
Fund managers have warned Thursday's declines may be a
preview of a rocky two months ahead as institutional investors
return from summer vacations and refocus on potential economic
pitfalls. The run-up to the Nov. 3 presidential election is also
expected to add to volatility.
At 10:18 a.m. ET, the Dow Jones Industrial Average .DJI
was down 123.67 points, or 0.44%, at 28,169.06 and the S&P 500
.SPX was down 44.18 points, or 1.28%, at 3,410.88. The Nasdaq
Composite .IXIC was down 320.00 points, or 2.79%, at
11,138.11.
Wall Street's fear gauge .VIX hit a more than 11-week
high.
Apple supplier Broadcom Inc AVGO.O gained 1.2% after it
forecast fourth-quarter revenue above analysts' estimates.
Declining issues outnumbered advancers for a 1.26-to-1 ratio
on the NYSE and a 2.09-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and no new low,
while the Nasdaq recorded 17 new highs and 38 new lows.