* Twitter shares soar as much as 92 pct in frenzied NYSE debut

* OTC Markets Group reopens trading in securities after halt

* Small cap stocks suffer worst decline since late Aug

* Indexes down: Dow 1 pct; S&P 1.3 pct; Nasdaq 1.9 pct

By Angela Moon

NEW YORK, Nov 7 (Reuters) - Frenzied buying in Twitter shares grabbed Wall Street's attention on Thursday, as the social media stock surged well above expectations, while major indexes fell, with the S&P 500 suffering its worst daily decline since August.

The broader market was hurt by weak earnings from Whole Foods and Qualcomm. The tech-heavy Nasdaq index recorded its biggest daily decline in a month.

"Twitter is grabbing all the attention here, but what you should really look at is also how the Nasdaq and the small caps are suffering today while the defensive stocks are holding up. It suggests that there are cracks under the surface," said Ryan Detrick, analyst at Schaeffer's Investment Research in Cincinnati, Ohio.

Twitter Inc soared as much as 92 percent in its first day of trading on the New York Stock Exchange as investors snapped up shares in the popular microblogging site in a frenzy that recalled the days of the dot-com bubble.

The shares opened at $45.10 a share, up from the initial public offering price of $26 set Wednesday, then added to those gains, hitting a high above $50. The stock closed up 73 percent at $44.90 with 117 million shares traded.

"This crowns Twitter probably as the most expensive IPO on a price-to-sales metric ever," said Channing Smith, managing director at Capital Advisors in Tulsa, Oklahoma. "With this multiple, you're leaning on everything going right," Smith said.

The rest of the market was more downbeat. Qualcomm shares fell 3.8 percent to $67.09, one of the biggest drags on both the S&P 500 and Nasdaq 100, after the company forecast revenue below expectations.

The Dow Jones industrial average was down 152.90 points, or 0.97 percent, at 15,593.98. The Standard & Poor's 500 Index was down 23.34 points, or 1.32 percent, at 1,747.15. The Nasdaq Composite Index was down 74.61 points, or 1.90 percent, at 3,857.33.

The Nasdaq was led lower by an 11 percent drop in Whole Foods after its results on Wednesday, while Tesla Motors continued its slide, dropping 7.5 percent one day after a big fall on lackluster earnings and a third car fire. Tesla remains a favorite among short-sellers who believe it is overvalued.

The Russell 2000 index of mid- and small-cap stocks fell 1.8 percent, its worst daily decline since late August.

Trading in OTC securities was resumed at 3:00 p.m. EST (2000 GMT) after a connectivity issue that had triggered a halt in more than 10,000 equities was resolved.