US STOCKS-Wall St loses early gains as trade concerns abound

* Trump says "not yet ready" to make a deal with China
* Bond yields hit lowest since 2017
* Total System jumps after Global Payments' buyout offer
* Dow down 0.93%, S&P 500 down 0.85%, Nasdaq down 0.39%

(Updates to market close)
By Chuck Mikolajczak
NEW YORK, May 28 (Reuters) - U.S. stocks closed lower on
Tuesday, with initial gains giving way to declines as the
likelihood of a prolonged trade war between the United States
and China once again kept risk appetite in check.
U.S. President Donald Trump on Monday said he was "not yet
ready" to make a deal with China, although he expected one could
be reached in the future. An expanding tariff battle between the
two sides has raised concerns the trade war would lead to a
global economic slowdown.
"The market holds up well, but then the weak hands take over
late in the day," said Ryan Detrick, senior market strategist at
LPL Financial in Charlotte, North Carolina.
"Pick a worry and it continues to grow and manifest, whether
it be trade or looking into consumer confidence, thinking maybe
those people did the survey before the China stuff hit the fan.
Clearly it's all about trade."
Consumer confidence jumped in May as households grew more
upbeat about the labor market, although economists said the
strong readings likely did not fully capture the impact of the
trade standoff between Washington and Beijing. The uncertainty has pushed investors toward safe-haven
assets, which resulted in benchmark 10-year U.S. Treasury yields
US10YT=RR dropping to their lowest since October 2017, while
the spread between the 10-year and 3-month bills US3MT=RR
narrowed to nearly a 12-year low. The majority of the 11 S&P sectors were in the red, with
only communication services .SPLRCL on the plus side.
The benchmark S&P 500 index .SPX is now down nearly 5%
from its closing high set on April 30, while the Dow Jones
Industrial index .DJI declined for a fifth straight week on
Friday, its longest weekly losing streak in eight years.
The tech sector, which is down 7.3% this month, also gave up
early gains and turned negative despite a boost from a 4.72%
jump in Total System Services Inc TSS.N .
Global Payments Inc GPN.N said it would buy the payment
technology company for about $21.5 billion in stock. Its shares
declined 3.04%. In addition, Advanced Micro Devices AMD.O shares surged
9.80% after the company unveiled new chips to battle for market
share with Intel INTC.O , which fell 2.24%.
The Dow Jones Industrial Average .DJI fell 237.32 points,
or 0.93%, to 25,348.37, the S&P 500 .SPX lost 23.91 points, or
0.85%, to 2,802.15 and the Nasdaq Composite .IXIC dropped
29.66 points, or 0.39%, to 7,607.35.
Among other stocks, Activision Blizzard Inc ATVI.O rose
2.86% after Goldman Sachs upgraded its shares to "buy" and said
the videogame publisher would benefit from its recent releases.
FedEx Corp FDX.N slipped 0.93% after Huawei Technologies
Co Ltd HWT.UL said it is reviewing its relationship with the
U.S. package delivery company after FedEx diverted two parcels
destined for Huawei addresses in Asia to the United States.
Declining issues outnumbered advancing ones on the NYSE by a
1.94-to-1 ratio; on Nasdaq, a 1.71-to-1 ratio favored decliners.
The S&P 500 posted 17 new 52-week highs and 19 new lows; the
Nasdaq Composite recorded 55 new highs and 134 new lows.
Volume is expected to be light throughout the holiday
shortened trading week. About 6.67 billion shares changed hands
in U.S. exchanges on Tuesday, compared with the 6.99
billion-share daily average over the last 20 sessions.