* Apple will release third session on tariff concerns
* Trade-sensitive Boeing, Caterpillar and chip stocks are slipping
* Volatility index at almost 3-month high
* Tyson Foods rising after profit estimates
* Index Indices: Dow 2.06%, S&P 2.12%, Nasdaq 2.77% (Changes Offer, Adds Details; Updates Rates)
By Medha Singh
5. August (Reuters) – Wall State's main indices fell sharply on Monday, with the Dow Jones Industrial Average falling above 500 points as China's willingness to slip the yuan in response to the latest US tariff threat fears it could exacerbate an ongoing trade war.
The yuan broke at the key level of $ 7 per dollar for the first time in more than a decade, and President Donald Trump blamed it as "a major breach", sending investors scrambling for security to assets such as government bonds, gold and the Japanese yen .  Trump stunned the financial markets last week with the threat of agreement to impose 10% tariff on the remaining $ 300 billion in Chinese imports, and abruptly abandon a brief ceasefire.
"Currency exchange is part of the trade war," said Andre Bakhos, CEO of New Vines Capital LLC in Bernardsville, New Jersey.
"There is a bold statement to the US saying that if you want to play, we can also play a different way. It takes all the optimism out of the market for a quick resolution to act (war)."
On Friday, the benchmark portfolio S&P 500 and Nasdaq suffered their worst weekly performance in 2019, in a week that also saw the US central bank cut interest rates for the first time in ten years.
At 11:02 ET, the Dow was down 546.37 points, or 2.06%, at 25,938.64, the S&P 500 was down 62.14 points, or 2.12%, at 2,869.91.
The Nasdaq Composite was down 221.50 points, or 2.77%, at 7,782.57.
Sales were wide, with all the 11 major S&P sectors in red. The S&P technology sector, heavily exposed by its chip makers and other global technology players to Chinese markets, fell by 3.2%.
Apple Inc slipped 4.1% as analysts warned that the recently proposed tariffs could hurt demand for the flagship iPhone, while the Philadelphia chip index slipped 3.7%. ] The CBOE Volatility Index, a measure of investor anxiety, rose to its highest level in around real months of 21.36 points.
U.S. Tax capital rates fell, with 10-year interest rates hitting their lowest levels since November 2016.
The difference between the three-month interest rate and 10-year interest rates grew to the widest since April 2007. This curve "inversion" between the two maturities has gone ahead of every US recession over the past 50 years.
Interest-rate banks plunged 3.02%.
The rest of the high flying FAANG group also lost ground. Facebook Inc, Amazon.com Inc, Netflix Inc and Google parent Alphabet Inc were down between 2.5% and 4%.
No.1 US meat processor Tyson Foods Inc was a bright spot, up 7.8% after beating quarterly estimates.
Sinking questions accounted for the number of advancers for a 7.17-to-1 ratio on the NYSE and for a 7.42-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 26 new lows, while the Nasdaq recorded nine new highs and 215 new lows. (Reporting by Medha Singh and Arjun Panchadar in Bengaluru; Editing by Patrick Graham, Anil D & # 39; Silva and Sriraj Kalluvila)