LIVE MARKETS-Despite the snow tariff anxiety turns Wall Street red

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DESPITE THE SNOW, TARIFF ANXIETY TURNS WALL STREET RED

While Wall Street and surrounding areas battled a whiteout blizzard on Monday, its main indexes turned red as tariff uncertainty came back to the forefront of investors' minds and they appeared to regret Friday's advance with consumer stocks leading the selloff. Also Monday's policy commentary was less than dovish.

In the U.S. northeast, deep snow and high winds shuttered transit systems and kept businesses shuttered while many residents hid indoors waiting for a break in the weather before starting to dig out in earnest.

U.S. indexes had closed higher on Friday, after a U.S. Supreme Court 6-3 ruling voided most of the tariffs President Donald Trump imposed last year, finding the emergency law he relied on did not allow tariff imposition.

But enthusiasm was dampened when, using a different untested statute, Trump announced first a 10%, then a 15%, global levy that could last five months while the administration seeks longer-term workarounds.

With this, the consumer discretionary index .SPLRCD, down ~2.4%, is among the biggest decliners of the S&P 500's .SPX 11 major industry groups right next to financials .SPSY, off 2.6%.

Some of the weakest consumer stocks are travel related with Expedia EXPE.O and Booking BKNG.O. DoorDash DASH.O was also among the weakest with brokerages cutting their price targets for the delivery service even after it issued a strong current quarter forecast last week.

Defensive sectors are top gainers but the ranking keeps changing in a choppy market. Consumer Staples .SPLRCS and healthcare .SPXHC are leaders along with utilities .SPLRCU. The energy sector .SPNY is also advancing as oil prices reached a six-month high as the U.S. and Iran prepared for a third round of nuclear talks while increased economic uncertainty was also in focus after the latest U.S. tariff upheaval.

Adding another potential damper to investors looking for more dovish monetary policy, Federal Reserve Governor Christopher Waller said on Monday that if the U.S. is moving to a higher-productivity, higher-growth economy it could imply that interest rates would also be higher, countering arguments that an unfolding change in U.S. productive capacity could let the Fed cut interest rates.

In positive news, however, Domino's Pizza DPZ.O shares are up 4.7% after it beat Wall Street fourth-quarter estimates for U.S. same-store sales as value-driven promotions and new menu items fueled demand. The news appears to be boosting the appetite for Papa John's PZZA.O with its shares up 2.8%.

And this is all ahead of the big earnings event of the week with artificial intelligence chip leader Nvidia NVDA.O due to report on Wednesday against a backdrop of fierce volatility in tech stocks in recent weeks over jitters about the potential for AI-related disruption.

Here is your morning snapshot from 10:31 a.m. ET:

(Sinéad Carew)

EARLIER ON LIVE MARKETS:

US COURT BLOW TO TRUMP TARIFFS TRIGGERS POLICY SCRAMBLE AND GLOBAL MARKET RELIEF CLICK HERE

GRAINS: POISED TO REAP SOME BIG GAINS? CLICK HERE

ROTATION INTO VALUE NOT OVER YET - JPM CLICK HERE

MINERS' CAPEX SIGNALS KEEP BOFA WARY ON EQUIPMENT MAKERS CLICK HERE

TECH DRAGS STOXX LOWER AS TRADE CHAOS WEIGHS; UTILITIES RISE CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES INCH LOWER CLICK HERE

COUNTING THE COST OF TARIFF CHAOS CLICK HERE