LIVE MARKETS-US stocks battered amid building uncertainty

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US STOCKS BATTERED AMID BUILDING UNCERTAINTY

The main U.S. stock indexes tumbled on Tuesday, as investors returned from the U.S. long weekend and reacted negatively to fresh tariff threats from President Donald Trump against Europe and renewed volatility in global markets.

The risk-off wave helped vault gold to fresh record highs, knocked stocks lower globally and left U.S. Treasuries wobbling under renewed selling pressure.

Indeed, the PHLX Gold/Silver Index .XAU was able to score yet another record close on Tuesday. This, while the Dow .DJI slid more than 1.7% and the S&P 500 .SPX and Nasdaq Composite .IXIC both tumbled more than 2% each.

The U.S. 10-Year Treasury yield US10YT=RR hit 4.313%, or its highest level since August 22 of last year. The yield rise was more pronounced on the long end of the curve, as investors not only reacted to President Trump's renewed threat of a trade clash with Europe over its proposed acquisition of Greenland, but also to turbulence in Japanese government bonds.

With the day's instability, the Nasdaq finished below its 50-day moving average (DMA) for the first time since January 2 of this year, while the S&P 500 ended below its 50-DMA for the first time since December 17.

Nearly all S&P 500 sectors ended red with Tech .SPLRCT and Consumer Discretionary .SPLRCD taking the biggest hits. Just defensive Staples .SPLRCS edged into the green at close.

All seven members of the Roundhill Magnificent Seven ETF MAGS.K ended down on the day. The ETF lost 3% for its biggest one-day drop since October 30. However, in another pocket of some strength, the Nasdaq Biotech Index .NBI ended modestly higher.

In any event, despite the day's carnage, recent relative performance trends persisted. Value .IVX held up better than Growth .IGX, and the S&P 500 Equal Weighted Index .SPXEW fell less than the cap-weighted index.

Although the small-cap Russell 2000 .RUT lost 1.2%, it also held up better than the SPX. Tuesday marked the 12th day in a row that this small-cap index has outperformed the S&P 500. The last streak of small-cap outperformance that was longer was a 13-day run that ended in June 2008.

Meanwhile, amid bubbling uncertainty, the CBOE Volatility Index .VIX is on pace to end above 20.00 for the first time since November 24.

Here is a snapshot of where markets stood just shortly after 4 p.m. ET.

(Terence Gabriel)

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