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 FALLS AS SLOWDOWN FEARS, POLICY UNCERTAINTY

Shares on Wall Street are down early on Tuesday, weighed down by persistent uncertainty about President Donald Trump's policies on tariffs, and worries about a slowdown amid massive government layoffs and immigration deportations.

Markets are also bracing for the potential impact of stricter U.S. trade controls on Beijing and awaited quarterly earnings from AI-chip leader Nvidia NVDA.O.

A report saying the U.S. is planning further restrictions on Nvidia's chip exports to China weighed on market sentiment as well, as did indications that Washington is consulting with allies including Japan and the Netherlands about tightening chip controls on China.

"The role of Trump policy shifts and the order of them matters and it shows up in equities, writes Bob Savage, head of market strategy at BNY. "Q4 reports are nearing the end and culminate in Nvidia tomorrow, while for economists, the role of inflation and wages remains critical."

Stocks extended their fall after a big drop in U.S. consumer confidence, which missed expectations as per the Conference Board.

U.S. rate futures are now pricing in 56 basis points in cuts in 2025, up from 48 bps on Monday, while the the S&P500 VIX volatility climbed above 20, for the first time since February 3.

"The question for many investors now is whether more Fed easing can return markets to soft-landing expectations rather than more bumpy outcomes," says Savage.

Here's the morning financial market snapshot:

(Gertrude Chavez-Dreyfuss)

*****

FOR TUESDAY'S EARLIER LIVE POSTS:

STERLING STAGFLATION STRESS? - CLICK HERE

GERMAN ELECTION: A NEW POSITIVE CATALYST FOR UTILITIES - CLICK HERE

GERMAN VOTE MIGHT KEEP EUROPE PROFIT TAKING AT BAY CLICK HERE

"SOLID" EARNINGS SEASON IN JAPAN - GS - CLICK HERE

STOXX STEADIES, QUESTIONS OVER UNILEVER - CLICK HERE

EUROPE BEFORE THE BELL: CHIPS AND DEFENCE FOR BREAKFAST - CLICK HERE

SEA OF RED AS US-CHINA TECH WAR RATCHETS UP - CLICK HERE