US STOCKS-Wall Street tumbles as concerns over trade talks mount

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* U.S. still pushing to limit capital flows to China - BBG
* China tones down expectations ahead of trade talks - SCMP
* Washington expands blacklist on Chinese firms
* Boeing falls on fresh worries over 737 MAX
* Indexes down: Dow 1%, S&P 500 1.14%, Nasdaq 1.13%

(Updates to open)
By Shreyashi Sanyal
Oct 8 (Reuters) - U.S. stocks fell more than 1% on Tuesday
as sentiment soured ahead of high-level trade talks after a
report the Trump administration was moving ahead with efforts to
limit capital flows into China and the inclusion of more Chinese
firms in a blacklist.
The declines were broad-based, with all the major S&P 500
sectors trading lower and 28 of the 30 components of the
blue-chip Dow Jones index in negative territory.
Adding to the pessimism was a South China Morning Post
report that said China had toned down expectations ahead of the
talks set to begin on Thursday and that the Chinese delegation
could depart Washington a day earlier than planned.
"I don't think there's really much hope that we are going to
see a completed deal any time soon," said Scott Brown, chief
economist at Raymond James in St. Petersburg, Florida. "For
markets, it may be enough to just see a stop in the escalation."
The U.S. widened its trade blacklist to include Chinese
video surveillance firm Hikvision 002415.SZ and surveillance
equipment maker Zhejiang Dahua Technology 002236.SZ among
others, drawing a sharp rebuke from Beijing. This pressured U.S. suppliers, with Intel Corp INTC.O and
Nvidia Corp NVDA.O falling about 1%. Ambarella Inc AMBA.O
slumped 12%.
The Philadelphia Semiconductor index .SOX declined 2.3%,
while technology stocks .SPLRCT dropped 1.2%.
Weighing on the Dow Jones Industrial Average .DJI was a
1.5% fall in shares of Boeing Co BA.N .
The Wall Street Journal reported friction between the United
States and Europe could further delay efforts to resume flights
of the planemaker's best-selling 737 MAX jets, which have been
grounded since early 2019.
Investors fled to the perceived safety of gold and
government debt. Gold prices rose nearly 1%, while yield on the
benchmark 10-year Treasury dropped.
At 9:50 a.m. ET, the Dow Jones Industrial Average .DJI was
down 264.98 points, or 1.00%, at 26,213.04, while the S&P 500
.SPX was down 33.40 points, or 1.14%, at 2,905.39. The Nasdaq
Composite .IXIC was down 90.11 points, or 1.13%, at 7,866.19.
Market participants will now focus on third-quarter earnings
season beginning next week and analysts expect the worst
quarterly profit performance since 2016, with earnings from S&P
500 companies declining nearly 3% from a year earlier, based on
IBES data from Refinitiv.
Domino's Pizza DPZ.N dropped 3.5% after the pizza chain
missed Wall Street estimates for quarterly same-store sales and
profit. U.S.-listed Chinese stocks also declined, with Alibaba Group
Holding BABA.N , JD.com Inc JD.O and Baidu Inc BIDU.O
falling between 2.7% and 3%.
Declining issues outnumbered advancers for a 4.14-to-1 ratio
on the NYSE and for a 4.08-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 10 new
lows, while the Nasdaq recorded five new highs and 60 new lows.