*

Weak demand in Treasury auction

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Disney ( DIS ) shares fall 4.5%

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Indexes: Dow down 0.6%, S&P 500 down 0.8%, Nasdaq down

1.1%

(Updates to 4:25 p.m. ET)

By Caroline Valetkevitch

NEW YORK, Aug 7 (Reuters) - U.S. stocks ended lower on

Wednesday, with the Nasdaq falling 1% as technology shares

declined and weak demand in a 10-year Treasury auction stoked

investor jitters in choppy trade.

Indexes started the day higher with a surge in tech shares,

and both began to lose steam in afternoon trading. With

investors still nervous after a recent steep selloff in global

stocks, equities pared gains further after the Treasury auction.

All three indexes went red, and losses steepened just before

the close. The S&P 500 technology index ended down

1.4% and was the biggest drag on the benchmark index.

"There's just a lot to worry about over the next eight weeks

or so, so I'm expecting more volatility. I wouldn't be surprised

if after a few days of rally you have another small selloff,"

said Peter Tuz, president of Chase Investment Counsel in

Charlottesville, Virginia.

Investors have been worried about a possible U.S. recession

and weaker forecasts from some big U.S. companies, among other

factors.

The Dow Jones Industrial Average fell 234.21 points,

or 0.6%, to 38,763.45, the S&P 500 lost 40.53 points, or

0.77%, to 5,199.5 and the Nasdaq Composite dropped

171.05 points, or 1.05%, to 16,195.81.

Lindsey Bell, chief strategist at 248 Ventures in Charlotte,

North Carolina, said investors also may be taking profits after

Tuesday's rebound in stocks.

"You don't just have the fall we had on Monday and it's

done. You typically test the lows again before we can move out

of this downtrend," she said.

On Monday, the Nasdaq and S&P 500 fell at least 3% each.

Stocks got early support Wednesday following comments from

Bank of Japan (BOJ) Deputy Governor Shinichi Uchida that the

central bank would not raise rates when financial markets are

unstable.

The BOJ's surprise rate hike on July 31 to a level unseen in

15 years had sparked a global stocks rout as investors unwound

their sharp yen carry trade positions following a surge in the

low-yielding currency, widely used for acquiring high-yielding

assets.

Shares of Walt Disney ( DIS ) fell 4.5% as it predicted a

"moderation in demand" at its theme park business in the coming

quarters.

Super Micro Computer ( SMCI ) shares dropped 20.1% after it

reported quarterly adjusted gross margins below estimates. Rival

Dell Technologies ( DELL ) dropped 4.9%.

Markets await more commentary on monetary policy from U.S.

central bank officials next week, in the run-up to the Jackson

Hole, Wyoming, event where Fed Chair Jerome Powell is scheduled

to speak.

Volume on U.S. exchanges was 12.93 billion shares, compared

with the 12.63 billion average for the full session over the

last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a

1.48-to-1 ratio; on Nasdaq, a 2.08-to-1 ratio favored decliners.

The S&P 500 posted 16 new 52-week highs and 9 new lows;

the Nasdaq Composite recorded 34 new highs and 195 new lows.

(Additional reporting by Shubham Batra and Shashwat Chauhan in

Bengaluru and Sinead Carew; Editing by Sriraj Kalluvila,

Shinjini Ganguli and David Gregorio)