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* China will impose tariffs on $ 60 billion worth of US goods
* Apple drops nearly 5%, the main drop in the technology sector
* S & P 500 at 4.4% below record levels
* Uber falls for the second day after the unsatisfactory IPO
* Falling Indices: Dow 2%, S & P 2.12%, Nasdaq 2.77% (Open Update)
By Sruthi Shankar and Amy Caren Daniel
May 13 (Reuters) – Major Wall Street indexes fell more than 2% on Monday after Beijing announced plans to retaliate with higher prices on US products, raising fears that a new series of measures restrictive makes the US economy conducive to recession.
Shares of technology companies, including chip makers, manufacturing giants and retailers exposed to China, have been at the center of sales.
The "FAANG" stock group – Facebook Inc., Amazon.com Inc., Apple Inc., Netflix Inc and Google's parent Alphabet Inc. – yielded between 1.7% and 5%.
The Chinese Finance Ministry announced on Monday that it expected to impose tariffs ranging from 5% to 25% on 5,140 US products listed on a target list of about $ 60 billion to June 1, following the lifting of US tariffs last week.
"This has made the situation more difficult and more expensive for the global economy, and until we come back there, the markets will be under pressure," said Art Hogan, a strategist in charge of markets at National Securities in New York.
"Any increase in tariffs is a drag on the global economy and if it slows the economy down, it will reduce profits and actions will react to that."
The S & P 500 recorded Friday its worst weekly decline since December, as Washington increased tariffs on Chinese goods worth $ 200 billion from 10% to 25%.
Tensions spilled over into global financial markets as the yield curve was composed of three-month US Treasury bills and 10-year reverse notes for the second time in less than a week on Monday.
An inversion of the yield curve is considered a classic signal of the onset of a recession. It also makes bank loans less profitable. The S & P bank index fell 2.7%
US stocks hit record highs just two weeks ago, in the hope of a trade deal and a positive earnings season for the first quarter. The S & P 500 traded 4.4% below its highest closing level.
As the trade dispute spreads, investors expect rates to increase business costs, reduce profit margins and hinder firms' ability to plan or make capital expenditures.
A report from Bank of America Merrill showed that new rates posed a downside risk for 2019, earnings per share from 1% to 3% for S & P 500 companies in the event of non-resolution.
Boeing Co., which is price sensitive, fell 2.9% and Caterpillar Inc. fell 4%.
The flea index in Philadelphia fell by 3.8%, which resulted in a 6% drop last week. Micron Technology Inc., Intel Corp. and Qualcomm Inc. fell between 2.6% and 3.3%.
At 9:55 am ET, the Dow Jones Industrial Average was down 518.98 points, or 2.00%, to 25,423.39, the S & P 500 down 61.03 points, or 2.12 percent. %, at 2,820.37 and the Nasdaq Composite down 219.42 points, or 2.77% at 7,697.52.
Shares of Uber Technologies Inc. fell 7.4%, extending losses after Friday's 7.6% drop, which was its first day of trading as a public company.
Falling issues outnumbered defenders for a ratio of 6.21 to 1 on the NYSE and 6.71 to 1 on the Nasdaq.
The S & P index posted six new highs over 52 weeks and 11 new lows, while the Nasdaq recorded seven new highs and 83 new lows. (Report by Sruthi Shankar and Amy Caren Daniel in Bengaluru, edited by Arun Koyyur)
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