US STOCKS-S&P 500 on track for worst 3-day decline since late-Jan

lunes 7 de abril de 2014 14:33 GYT

* Internet stocks tumble; Yahoo shares down nearly 5 pct

* Utilities, consumer staples in positive territory

* Indexes down: Dow 0.9 pct; S&P 1.2 pct; Nasdaq 1.7 pct (Updates to afternoon session)

By Angela Moon

NEW YORK, April 7 (Reuters) - U.S. stocks fell sharply on Monday, putting the S&P 500 on track for its biggest three-day drop in two months, as investors bid down Internet stocks which had outperformed recently and rotated into defensive names to protect against further declines.

Internet stocks were the day's biggest decliners with down 2.8 percent at $314.02, Yahoo! Inc off 4.6 percent at $32.67 and Google Inc down 1.9 percent at $532.78. The Global X Social Media ETF which includes Facebook and LinkedIn fell 3.4 percent to $17.91.

Momentum shares - stocks in fast-growing industries which had seen their stock prices rocket in recent weeks - stabilized after their decline helped fuel a sell-off on Friday.

But selling pressure migrated to other sectors, with only defensives such as utilities and consumer staples in positive territory among the 10 major S&P sectors.

"This type of market behavior (buyers favoring defensive names) suggests investors are turning cautious again after the big gains in stocks during the past year," said Gary Thayer, chief macro strategist at Wells Fargo Advisors.   Continuación...