*

Feb PPI cooler than expected after upward Jan revisions

*

Dollar General ( DG ) beats earnings expectations; guidance

disappoints

*

Intel ( INTC ) gains after naming chip industry veteran Lip-Bu Tan

CEO

*

Adobe falls after dull quarterly revenue forecast

(Updates to market close)

By Stephen Culp

NEW YORK, March 13 (Reuters) - Wall Street ended sharply

lower on Thursday and the S&P 500 confirmed it is in a

correction after cool inflation data was overshadowed by fears

that the escalating, hydra-headed tariff war being waged by the

United States against its biggest trading partner could reignite

inflation and tip the economy into recession.

A broad selloff sent all three major U.S. stock indexes

tumbling, with losses in tech and tech-related megacap shares

dragging the Nasdaq down most.

"Sentiment's terrible," Mike Dickson, head of research at

Horizon Investments in Charlotte, North Carolina. "There's new

tariff headlines every day, and that's weighing on things."

"And you're seeing it most acutely in some of the more

sensitive areas of the market like the fairly inflated

Magnificent 7," Dickson added. "It doesn't feel great out there

right now."

The S&P 500 closed more than 10% below its February 19

record closing high, confirming the bellwether index has been in

a correction since then.

On March 6, the Nasdaq confirmed it is in a correction by

closing 10.4% lower than its all-time closing high reached on

December 16.

"There's still a lot of uncertainty concerning the

economy," said Chuck Carlson, chief executive officer at Horizon

Investment Services in Hammond, Indiana.

"Some of that uncertainty is certainly being driven by

tariffs, but there's other uncertainty out there, and it's got

investors thinking maybe the hard landing is happening after

all."

In the latest episode of Trump's multi-front trade war, the

European Union responded to blanket U.S. tariffs on steel and

aluminum by imposing a 50% tax on American whiskey exports,

prompting the president to threaten on Truth Social to charge a

200% tariff on imports of European wines and spirits.

A Reuters/Ipsos poll of Americans conducted March 11-12

showed that 57% of poll participants believe Trump's moves to

shake up the economy are too erratic, and 53% think the tariff

war will do more harm than good.

The Labor Department's Producer Price Index (PPI) appeared

to echo Wednesday's CPI data, with cooler-than-expected readings

appearing to confirm inflation remains on its meandering path

downward as it approaches the U.S. Federal Reserve's 2% annual

target.

This, along with a tame jobless claims report, provided some

assurance that, for now, inflation is headed in the right

direction and the labor market is on solid footing.

Markets were also eyeing the ongoing wrestling match on

Capitol Hill as lawmakers scramble to pass a stop gap spending

bill ahead of a fast-approaching deadline to avert a partial

government shutdown.

According to preliminary data, the S&P 500 lost 77.74

points, or 1.39%, to end at 5,521.56 points, while the Nasdaq

Composite lost 343.77 points, or 1.95%, to 17,304.68.

The Dow Jones Industrial Average fell 537.67 points, or

1.30%, to 40,813.26.

Intel ( INTC ) jumped after the chipmaker appointed industry

veteran Lip-Bu Tan as its chief executive officer.

Adobe dropped after the software company forecast

quarterly revenue in line with estimates.

Discount retailer Dollar General ( DG ) reported

disappointing same store sales estimates but provided upbeat

quarterly results, sending its shares higher.