LIVE MARKETS-Wall Street cuts losses in volatile trading

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

WALL STREET CUTS LOSSES IN VOLATILE TRADING

Wall Street shares plummeted on Monday for a third straight session, with the S&P 500 .SPX, at one point falling into bear market territory, as investors sold equities and some moved to Treasuries, fearful that the world's largest economy could tip into recession, or worse a depression, due to President Donald Trump's sweeping tariff plans.

But it did briefly bounce back sharply after reports that Trump was considering a 90-day reprieve on tariffs except China. But stock indexes came back down after White House officials said they were not aware where that report came from.

"I guess there was some hope over the weekend that maybe we would see this as part of the start of a negotiation, but the messages that we've so far seen suggest that the President Trump is comfortable with the market reaction and that he's going to continue on this course," says Richard Flax, chief investment officer at Moneyfarm.

White House economic adviser Kevin Hassett played down economic concerns over Trump's tariffs, saying the U.S. president has talked to world leaders all weekend and will listen to proposals for "great deals." But that did not help much.

In the two sessions after Trump's tariff decision, the S&P 500 has tumbled 10.5%, erasing nearly $5 trillion in market value, marking its most significant two-day loss since March 2020.

The fed funds futures market has priced in more than 100 basis points of cuts this year, with traders pricing in a cut at the June meeting

Here's an early snapshot of financial markets:

(Gertrude Chavez-Dreyfuss)

FOR MONDAY'S EARLIER LIVE MARKETS POSTS:

S&P 500 INDEX POISED FOR FURTHER LOSSES; TRADERS EYE THE CHARTS - CLICK HERE

DON'T EXPECT THE FED TO COME TO THE RESCUE - CLICK HERE

WATCH THOSE RETAIL FLOWS - CLICK HERE

SELL EVERYTHING! - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES TANK AS TRUMP STICKS TO HIS GUNS - CLICK HERE

TARIFF MEDICINE'S CRIPPLING SIDE EFFECTS - CLICK HERE