US STOCKS-Wall Street rumbles as trade war threatens US economy

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* Indexes: Dow -1.85%, S&P 500-178%, Nasdaq -1.65%

* Sept. US private wage growth is growing slower than expected

* Ford falls as quarterly car sales decline

* Activision Blizzard down on Bernstein valuation cut

* Leans up with better-than-expected profits (Updates to afternoon) [19659007] By Noel Randewich [19659007] 2. October (Reuters) – Wall Street's most important indexes were on track for the sharpest one-day slump of nearly six weeks Wednesday after a private sector employment report suggested that US and China trade wars were contaminating the US economy.

All of the 11 major S&P indices were in the red, with technology, materials and energy each down more than 2%.

The ADP National Employment Report showed private wage growth in August was not as strong as previously estimated, saying that "businesses have become more cautious during the year of hiring," with small businesses becoming "particularly hesitant."

What became the fear triggered on Tuesday when a report showed that US factory activity fell to its lowest level in more than a decade.

The recent weak data have shaken the investor's belief in the strength of the domestic economy, which had shown relative resilience in the face of slowing global growth. Confidence in the US economy has helped support Wall Street this year.

"If China buys less from us, we have less to produce, fewer orders to fill. These data indicate that we are not immune to this trade conflict, that it hurts us as well as China," said Sam Stovall, chief investment strategist at CFRA Research.

The focus is now on the Labor Department's more comprehensive Labor Report on Friday for further evidence of the health of the US economy.

The S&P 500 and Dow slipped below their 100-day moving average for the first time in about a month. Many investors believe that falling below such moving averages means that the indices are likely to fall further.

The S&P 500 is now about 5% below its high hit all-time in July after striking the mark two weeks ago.

At 14.38 ET, the Dow Jones Industrial Average was down 1.85% at 26,082.02 points, while the S&P 500 lost 1.78% to 2,877.9.

Nasdaq Composite fell 1.65% to 7,778.19.

The Cboe Volatility Index, or VIX, an alternative-based measure of investor anxiety, rose 1.9 points to 20.47, its highest in about a month.

Activision Blizzard Inc fell 2.0% after Bernstein downgraded the video game master's shares to "market performance."

Ford Motor Co shares fell 3.1% after the car manufacturer reported a decline of about 5% in US car sales for the third quarter. General Motors Co fell by 4.0% after quarterly sales came in just below US automotive website Edmund's & # 39; forecast.

Among the bright spots, homeowner Lennar Corp rose 2.6% after the company reported better-than-expected earnings as cheaper mortgage rates led to higher demand for their homes.

Johnson & Johnson gained 1.3% after the drug maker said it would pay $ 20 million to settle claims from two Ohio counties, so it could avoid an upcoming federal lawsuit that wants to hold the industry accountable for the nation's opioid epidemic .

Declining issues outperformed the NYSE with a 3.94 to 1 ratio; on the Nasdaq favored a 2.85-to-1 ratio decline.

The S&P 500 posted 3 new 52-week highlights and 13 new lows; Nasdaq Composite registered 4 new highs and 175 new lows.

(Additional reporting by Medha Singh and Arjun Panchadar in Bengaluru Editing by Ani D & # 39; Silva and Nick Zieminski)