US STOCKS-Wall St lower as tech stocks sell-off on Huawei fallout worries

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* Apple, tech stocks drop as U.S.-China trade tensions mount
* Top chipmakers to not supply Huawei - report
* Six of 11 major S&P sectors trading lower
* Sprint, T-Mobile jump as telecoms regulator chair backs
merger
* Indexes fall: Dow 0.31%, S&P 0.42%, Nasdaq 1.16%

(Updates prices, comments)
By Shreyashi Sanyal
May 20 (Reuters) - U.S. stocks fell on Monday, as
Washington's crackdown on China's Huawei Technologies stoked
fears about a hit to the broader technology sector and ratcheted
up trade tensions between the world's two largest economies.
Apple Inc AAPL.O slumped 3.3%, weighing the most on the
three main indexes and driving down the S&P 500 technology
sector .SPLRCT 1.27%, the biggest drop among the six S&P
sectors trading lower.
The iPhone maker was also pressured by a warning from HSBC
that higher prices for the company's products following the
increases in tariffs could have "dire consequences" on demand.
U.S. suppliers of Huawei HWT.UL , including Qualcomm
QCOM.O , Micron Technology MU.O and Broadcom Inc AVGO.O ,
fell between 3% and 5%, while the Philadelphia Semiconductor
Index .SOX slid 2.9% to its lowest level in over two months.
"Huawei is sort of emblematic of the problems that are
inherent in this negotiation," said Peter Cecchini, managing
director and chief market strategist at Cantor Fitzgerald in New
York.
"These sort of issues aren't resolved in short order, it
takes a lot of time and effort to work through all of this."
Huawei, the world's largest telecoms equipment maker, was
added to a trade blacklist by the Trump administration on
Thursday, the latest worry for financial markets already reeling
under uncertainties from the latest round of tariffs.
Mobile phone parts maker Lumentum Holdings Inc LITE.O said
it would halt shipments to Huawei and cut its quarterly revenue
expectations, driving its shares down 2.5%. "Inventory corrections are going on in the semiconductor
space and the industry is pricing in the Huawei impact on the
value chain but they are not pricing in the global slowdown,"
added Cecchini.
Alphabet Inc's GOOGL.O Google has suspended some business
with Huawei, Reuters reported on Sunday, while chipmakers
including Intel Corp INTC.O , Qualcomm, Xilinx Inc XLNX.O and
Broadcom said they will not supply the Chinese company until
further notice, according to a Bloomberg report. Helping limit the losses were gains in Sprint Corp S.N and
T-Mobile US Inc TMUS.O . Sprint shares jumped 24%, while
T-Mobile rose 5.5% after the companies won support of the U.S.
telecoms regulator chairman for their proposed $26 billion
merger.
Verizon Communications Inc VZ.N and AT&T Inc T.N gained
about 2.5%.
At 11:13 a.m. ET, the Dow Jones Industrial Average .DJI
was down 79.01 points, or 0.31%, at 25,684.99. The S&P 500
.SPX was down 11.90 points, or 0.42%, at 2,847.63 and the
Nasdaq Composite .IXIC was down 90.76 points, or 1.16%, at
7,725.53.
Wall Street's main indexes have succumbed to selling
pressure in May after touching record highs on mounting concerns
about a protracted U.S.-China trade war. The S&P 500 is on track
to post its worst monthly decline since the December sell-off,
trading 3.7% off its all-time high.
Investors will also look for comments from a clutch of
retailers reporting this week such as Home Depot HD.N ,
Nordstrom JWN.N , Kohl's KSS.N and Target TGT.N for
comments on the impact of the latest round of tariffs.
Dish Network Corp DISH.O shares tumbled 11.2%, the most
among S&P 500 companies, after the satellite TV service provider
said it would buy broadcast satellite service assets from
EchoStar Corp in an $800 million deal.
Declining issues outnumbered advancers for a 1.55-to-1 ratio
on the NYSE and a 1.78-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and 11 new lows,
while the Nasdaq recorded 23 new highs and 117 new lows.