By Will Horner and Michael Wursthorn 

The Dow Jones Industrial Average fell more than 250 points Thursday after the latest flare-up in U.S.-China trade tensions quelled investors' expectations of a near-term resolution between the world's two biggest economies.

Shares of technology, industrial and financial companies all fell, as investors cut their exposure to more risky assets and sought protection in U.S. Treasurys, sending yields on the benchmark note to their lowest levels since late 2017. The trade angst also rocked energy stocks, which slid alongside a more-than-5% pullback in U.S. crude oil prices.

Thursday's losses dragged the Dow industrials lower for the week, putting the blue-chip index at risk of posting its fifth consecutive weekly loss -- its longest losing streak since 2011.

The latest rhetoric from Chinese officials sent stocks tumbling after Ministry of Commerce spokesperson Gao Feng told CNBC that the U.S. should "adjust its wrong actions" if it would like to continue negotiations. Investors worry the U.S. and China are moving further apart on trade, potentially exposing U.S. companies and the economy to further retaliation.

"Everything is in the red today," said Larry Peruzzi, managing director of international equity trading at Mischler Financial. "China is digging in and it seems like things are getting worse. It's just putting together a very negative sentiment for the market."

The Dow industrials fell 297 points, or 1.2%, to 25476 in recent trading, while the S&P 500 shed 1.1%. The Nasdaq Composite gave up 1.3%.

Nearly all 11 major S&P 500 sectors were down in recent trading, with the exception of utility stocks, which investors tend to favor for their dividends during periods of economic uncertainty.

Most technology companies were trading lower, with Amazon.com, Facebook, Microsoft and Apple all giving up more than 1%, as investors worry the trade spat will increasingly pressure U.S. technology companies that have a significant exposure to China.

The S&P 500's industrial stocks, which are also viewed as bystanders in a U.S.-China trade spat, gave up 1.4%.

Energy companies posted some of the biggest losses. The sector slid 3% due to a 5.2% pullback in U.S. crude oil after the trade spat raised doubts about the near-term appetite for the commodity.

Shares of Tesla were among the few companies to gain some ground during Thursday's trading session. The electric car maker's stock added 1.6% after reports that it had more 50,000 in net new orders for the current quarter.

The yield on the benchmark 10-year U.S. Treasury note, meanwhile, fell to 2.348%, according to Tradeweb, putting it on pace to close at its lowest level since late 2017.

That pushed the 10-year's yield below the yield on the three-month Treasury bill for the first time since May 15 -- a potential harbinger of further economic tumult.

In Europe, the Stoxx Europe 600 dropped 1.2%, with all sectors of the pan-continental index falling into the red. In Asia, markets were broadly lower. The Shanghai Composite slipped 1.4%, Hong Kong's Hang Seng traded 1.6% lower and Japan's Nikkei lost 0.6%.

Write to Michael Wursthorn at Michael.Wursthorn@wsj.com

(END) Dow Jones Newswires

May 23, 2019 11:32 ET (15:32 GMT)