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* U.S. still pushing to limit capital flows to China - BBG
* China tones down expectations ahead of trade talks - SCMP
* Washington expands blacklist on Chinese firms
* Boeing falls on fresh worries over 737 MAX
* Indexes down: Dow 1%, S&P 500 1.14%, Nasdaq 1.13% (Updates to open)
By Shreyashi Sanyal
Oct 8 (Reuters) - U.S. stocks fell more than 1% on Tuesday as sentiment soured ahead of high-level trade talks after a report the Trump administration was moving ahead with efforts to limit capital flows into China and the inclusion of more Chinese firms in a blacklist.
The declines were broad-based, with all the major S&P 500 sectors trading lower and 28 of the 30 components of the blue-chip Dow Jones index in negative territory.
Adding to the pessimism was a South China Morning Post report that said China had toned down expectations ahead of the talks set to begin on Thursday and that the Chinese delegation could depart Washington a day earlier than planned.
"I don't think there's really much hope that we are going to see a completed deal any time soon," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. "For markets, it may be enough to just see a stop in the escalation."
The U.S. widened its trade blacklist to include Chinese video surveillance firm Hikvision and surveillance equipment maker Zhejiang Dahua Technology among others, drawing a sharp rebuke from Beijing.
This pressured U.S. suppliers, with Intel Corp and Nvidia Corp falling about 1%. Ambarella Inc slumped 12%.
The Philadelphia Semiconductor index declined 2.3%, while technology stocks dropped 1.2%.
Weighing on the Dow Jones Industrial Average was a 1.5% fall in shares of Boeing Co.
The Wall Street Journal reported friction between the United States and Europe could further delay efforts to resume flights of the planemaker's best-selling 737 MAX jets, which have been grounded since early 2019.
Investors fled to the perceived safety of gold and government debt. Gold prices rose nearly 1%, while yield on the benchmark 10-year Treasury dropped.
At 9:50 a.m. ET, the Dow Jones Industrial Average was down 264.98 points, or 1.00%, at 26,213.04, while the S&P 500 was down 33.40 points, or 1.14%, at 2,905.39. The Nasdaq Composite was down 90.11 points, or 1.13%, at 7,866.19.
Market participants will now focus on third-quarter earnings season beginning next week and analysts expect the worst quarterly profit performance since 2016, with earnings from S&P 500 companies declining nearly 3% from a year earlier, based on IBES data from Refinitiv.
Domino's Pizza dropped 3.5% after the pizza chain missed Wall Street estimates for quarterly same-store sales and profit.
U.S.-listed Chinese stocks also declined, with Alibaba Group Holding, JD.com Inc and Baidu Inc falling between 2.7% and 3%.
Declining issues outnumbered advancers for a 4.14-to-1 ratio on the NYSE and for a 4.08-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 10 new lows, while the Nasdaq recorded five new highs and 60 new lows. (Reporting by Shreyashi Sanyal and Arjun Panchadar in Bengaluru; Editing by Sriraj Kalluvila)