US STOCKS-Wall Street tumbles over 1% on trade, growth fears

* Chipmakers, tech stocks fall as trade tensions rise
* Energy stocks mirror slump in oil prices
* Technology stocks drag the main indexes lower
* L Brands jumps after quarterly earnings beat
* Indexes fall: Dow 1.39%, S&P 1.33%, Nasdaq 1.51%

(Changes comment, updates prices)
By Shreyashi Sanyal
May 23 (Reuters) - U.S. stock indexes fell more than 1% on
Thursday, as investors sold off technology, industrials and
energy stocks on fears that a spiraling trade war between the
United States and China would crimp global growth.
Technology, among sectors most exposed to China, was the
hardest hit. Microsoft Corp MSFT.O and Apple Inc AAPL.O were
down more than 1%, dragging the sector lower, while the chip
index .SOX dropped 2.3%.
Oil prices plunged more than 4% on trade fears, leaving the
energy index .SPNY down 3.2%, the biggest decliner among the
major 11 S&P sectors.
Materials, financial and consumer discretionary sectors also
posted losses of more than 1% in a broad-based decline.
"This is a textbook defensive move," said Shawn Cruz,
manager of trader strategy at TD Ameritrade in New Jersey.
"The one thing that can give markets some reprieve is that
if the U.S. and China come back to the negotiating table and
delay the tariffs they have already put in place."
Beijing said on Thursday Washington needs to correct its
"wrong actions" for trade talks to continue after the United
States blacklisted Huawei Technology Co Ltd HWT.UL last week.

In further evidence of the trade war hitting domestic
economy, data from IHS Markit showed U.S. manufacturing growth
measured its weakest pace of activity in nearly a decade and new
orders fell for the first time since August 2009. The newest round of U.S. tariffs on Chinese imports will
cost the typical American household $831 annually, according to
a Federal Reserve Bank of New York research.
Stocks have succumbed to selling pressure in May after
Washington and Beijing engaged in tit-for-tat tariffs and other
retaliatory measures, with the S&P 500 on track to post its
worst monthly decline since the December sell-off.
At 11:23 a.m. ET, the Dow Jones Industrial Average .DJI
was down 357.04 points, or 1.39%, at 25,419.57. The S&P 500
.SPX was down 37.88 points, or 1.33%, at 2,818.39 and the
Nasdaq Composite .IXIC was down 117.30 points, or 1.51%, at
7,633.54.
U.S. Treasury yields dropped, and two yield curve indicators
briefly inverted on Thursday, sending the banking index .SPXBK
down 1.95%. US/
Defensive utilities .SPLRCU was up 0.2%, while real estate
.SPLRCR was flat.
Among other stocks, NetApp Inc NTAP.O slumped 11.9%, the
most on the S&P 500, after the data storage equipment maker
forecast current-quarter profit and revenue below Wall Street
estimates.
In a bright spot, L Brands Inc LB.N jumped 12.5% after the
retailer reported better-than-expected quarterly earnings.

Declining issues outnumbered advancers for a 3.96-to-1 ratio
on the NYSE and a 4.12-to-1 ratio on the Nasdaq.
The S&P index recorded 20 new 52-week highs and 21 new lows,
while the Nasdaq recorded 18 new highs and 134 new lows.