(Reuters) - The Dow Jones Industrial Average sank more than 2 percent at the open on Wednesday as big U.S. manufacturers, grain merchants and chipmakers bore the brunt of a deepening trade conflict between China and the United States.

Traders work on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., March 29, 2018. REUTERS/Brendan McDermid

The S&P 500 .SPX opened below its 200-day moving average, a key technical level.

The Dow fell 506.21 points, or 2.11 percent, to 23,527.15. The S&P lost 40.75 points, or 1.56 percent, to 2,573.7. The Nasdaq Composite .IXIC dropped 126.95 points, or 1.83 percent, to 6,814.33.

Reporting by Sruthi Shankar in Bengaluru; Editing by Savio D'Souza

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