CORRECTED-US STOCKS-Global growth worries slam Wall St as trade tensions persist

(Corrects date in paragraph 5 for comparative level of 10-year
Treasury yields to December 2017, not December 2019)
* Energy stocks mirror slump in oil prices
* L Brands jumps after quarterly earnings beat
* Indexes fall: Dow 1.62%, S&P 1.67%, Nasdaq 2.04%

By April Joyner
NEW YORK, May 23 (Reuters) - U.S. stocks slumped on Thursday
as investors dumped shares of technology companies as well as
businesses in cyclical sectors on fears that the escalating
trade war between United States and China would stymie global
economic growth.
Further fueling trade fears among investors, Beijing said
that 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. Among the S&P 500's major sectors, only utilities .SPLRCU
and real estate .SPLRCR , both considered defensive areas,
registered gains as investors moved to safe-haven assets such as
Treasuries.
Shares of S&P 500 technology .SPLRCT and industrial
.SPLRCI companies, two sectors that have been bellwethers of
trade sentiment, fell more than 2%. Shares of S&P 500 companies
in the cyclical financial .SPSY and energy .SPNY sectors
also tumbled, with the 3.8% drop in energy shares leading losses
among S&P 500 sectors.
A 5% plunge in oil prices in response to a dampened outlook
for demand impeded energy shares while a drop in
10-year Treasury yields, which hit their lowest level since
December 2017, held back financial shares. "We're going to see a drift lower until there's a resolution
of what's happening with China," said Jamie Cox, managing
partner at Harris Financial Group in Richmond, Virginia. "If
you're trading, it's not a bad idea to put yourself on the
sidelines and sit it out."
Adding to the downbeat mood in markets, data from IHS Markit
showed U.S. manufacturing faltered in May, with new orders
falling for the first time since August 2009. "Investors realize that coming to a deal is going to be more
challenging and that is really harmful to the economic
environment," said Luke Tilley, chief economist at Wilmington
Trust in Wilmington, Delaware, who described the day's trading
as "a classic risk-off movement."
The Dow Jones Industrial Average .DJI fell 418.29 points,
or 1.62%, to 25,358.32, the S&P 500 .SPX lost 47.77 points, or
1.67%, to 2,808.5 and the Nasdaq Composite .IXIC dropped
157.90 points, or 2.04%, to 7,592.94.
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
first monthly decline since the December sell-off.
Shares of NetApp Inc NTAP.O tumbled 9.0%, the
second-biggest percentage drop on the S&P 500, after the data
storage equipment maker forecast current-quarter profit and
revenue below Wall Street estimates. L Brands Inc LB.N shares jumped 11.8% after the owner of
Victoria's Secret and Bath & Body Works reported
better-than-expected quarterly earnings.
Declining issues outnumbered advancing ones on the NYSE by a
4.24-to-1 ratio; on Nasdaq, a 4.64-to-1 ratio favored decliners.
The S&P 500 posted 23 new 52-week highs and 27 new lows; the
Nasdaq Composite recorded 19 new highs and 177 new lows.