LIVE MARKETS-Nasdaq in correction territory as trade war fears mount

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NASDAQ IN CORRECTION TERRITORY AS TRADE WAR FEARS MOUNT

Wall Street's main indexes are sharply lower early on Tuesday, with the Nasdaq Composite .IXIC dropping more than 10% from its all-time high, as chipmaker Nvidia NVDA.O is extending its recent slump on concerns about AI spending, while worries of a global trade war are also weighing.

The U.S. imposed 25% tariffs on imports from Mexico and Canada, and doubled duties on Chinese goods to 20%. A standoff between the countries could upend nearly $2.2 trillion in two-way annual trade.

Nearly all S&P 500 .SPX sectors are lower with financials .SPSY, off more then 3%, taking the biggest hit. Staples .SPLRCS are edging higher and are the sole gainer. With the rise, staples are on track to notch a record closing high.

As stands, the SPX is now down more than 6% from its record closing high. The Dow .DJI is down 5.4% from its record close, and the Nasdaq is in correction territory, down 10.4% from its record close.

The small-cap Russell 2000 .RUT is down about 15.8% from its record close.

Meanwhile, given risk-off action, traders are watching the S&P 500 index, which is now around 5,760, to see how it behaves as it nears its 200-day moving average, which is now around 5,725.

Since reclaiming this long-term moving average on November 2, 2023, the benchmark index has not scored a daily close back below it.

Here is a snapshot of where markets stood around 10:07 EST:

(Terence Gabriel)

FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:

EURO ZONE ECONOMIC WOES WILL PROMPT ECB RATE CUTS, MORGAN STANLEY SAYS - CLICK HERE

BENCHMARK TREASURY YIELD ON A 6-WEEK LOSING STREAK - CLICK HERE

"EITHER WAY, THE EU CONSUMER PAYS" - CLICK HERE

SWISS BULLS CHARGE ON DEFENSIVE PLAYS - CLICK HERE

IS THE EURO STRENGTH A SIGN OF 'ASSERTIVENESS'? - CLICK HERE

VOLATILITY POPS, STOXX DROPS - CLICK HERE

BEFORE THE BELL: TARIFF WOES, DEFENCE POINTS HIGHER - CLICK HERE

NEW TRUMP TARIFFS TAKE EFFECT, EU ALSO IN CROSSHAIRS - CLICK HERE