US stocks open lower amid trade fears

NEW YORK -US stocks traded on a downbeat note on Monday as investors were concerned about intensifying trade tensions between the United States and its major trade partners.

At midday, the Dow Jones Industrial Average sank 426.83 points, or 1.74 percent, to 24,154.06. The S&P 500 dropped 49.01 points, or 1.78 percent, to 2,705.87. The Nasdaq Composite Index was down 189.11 points, or 2.46 percent to 7,503.70.

The Dow's triple-digit losses were mainly led by the decline of Intel and Boeing. Shares of Intel and Boeing decreased about 4 percent and 3 percent, respectively, around midday.

Tech sector declined more than 2 percent, weighing on the S&P 500. The Nasdaq also fell, with Micron Technology and Netflix among the worst performers. Shares of Micron and Netflix slid about 7.5 percent and 6.3 percent, respectively.

Investors grew increasingly concerned that the global economy could take a hit from the tensions between the world's largest economy and its key partners, experts said.

On the economic front, the Chicago Fed National Activity Index (CFNAI) was negative 0.15 in May, down from postive 0.42 in April, indicating slower economic growth in May, according to the Federal Reserve Bank of Chicago Monday.

The CFNAI is a monthly index designed to gauge overall economic activity and related inflationary pressure. A zero value CFNAI indicates the national economy expanding at its average historical trend rate of growth, negative values indicate below average growth, and positive values above average growth.