(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

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Lilly up on launching higher-dose, discounted Zepbound

vials

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Solventum ( SOLV ) rises after Thermo Fisher to buy unit for $4.1

bln

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S&P 500, Dow, Nasdaq at over one-month low

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Indexes down: Dow 0.01%, S&P 500 0.80%, Nasdaq 1.58%

(Updates with mid-session trading)

By Johann M Cherian and Sukriti Gupta

Feb 25 (Reuters) - Wall Street's main indexes fell to

touch a more than one-month low on Tuesday after fresh economic

data indicated consumer mood was deteriorating and investors

braced for a possible fallout from tighter U.S. trade controls

on Beijing.

The Conference Board said consumer confidence deteriorated

in February at its fastest pace in three-and-a-half years, with

estimates for 12-month domestic inflation surging amid worries

that U.S. tariffs on imports would raise prices for households.

Investors flocked to Treasury bonds, sending the yield on

the two-year note to its lowest since November,

helping real estate stocks rise 1.4%.

Sectors which are expected to fare better despite economic

uncertainty gained, with consumer staples rising 1.9%

and healthcare adding 0.3%.

"There has been a lot of talk about tariffs, but until we

really know what (the) policy will end up being, the uncertainty

is making it difficult for the bulls to really get any kind of

control of this market," said Chris Zaccarelli, chief investment

officer at Northlight Asset Management.

Tuesday's consumer confidence report reinforced worries that

the domestic economy is stalling and the U.S. Federal Reserve is

likely to be cautious about cutting interest rates.

U.S. Treasury Secretary Scott Bessent said the economy is

more fragile under the surface than economic metrics suggest.

Interest-rate futures currently point to the central bank

staying put on borrowing costs for the first half of the year,

according to data compiled by LSEG.

Policymaker Thomas Barkin and Fed Vice Chair for Supervision

Michael Barr are expected to speak through the day.

At 11:50 a.m. the Dow Jones Industrial Average fell

5.45 points, or 0.01%, to 43,455.76, the S&P 500 lost

47.97 points, or 0.80%, to 5,935.28, and the Nasdaq Composite

lost 304.07 points, or 1.58%, to 18,983.51.

A gauge tracking investor fear spiked to hit its

highest in nearly a month and was last up 1.57 points at 20.51.

Seven of the S&P 500's 11 sectors traded lower, with

communication services leading declines with a 1.8%

drop.

Investors also focused on a report that said the U.S. was

planning further restrictions on Nvidia's ( NVDA ) chip exports to China

and that Washington was consulting with allies about tightening

chip curbs on Beijing.

Nvidia ( NVDA ) dropped 2.9% and an index tracking

semiconductor stocks fell 1.9%.

Nvidia's ( NVDA ) results on Wednesday will be crucial for technology

companies, as investors have questioned the industry's hefty

artificial-intelligence spends, especially after low-cost

competition from China's DeepSeek rattled markets in January.

The S&P 500 technology sector is on track for its

first quarterly decline since July 2023, if losses hold.

Crypto stocks fell, with Coinbase down 8.3% and

MicroStrategy ( MSTR ) down 11% tracking bitcoin prices,

which touched their lowest since November.

Eli Lilly ( LLY ) rose 2.1% after the drugmaker said it has

begun selling higher doses of its weight-loss drug Zepbound in

vials in the U.S., at a discount to the injector-pen versions.

Solventum ( SOLV ) jumped 9.8% after drug manufacturer

Thermo Fisher said it will buy the company's

purification and filtration business for about $4.1 billion.

Declining issues outnumbered advancers by a 1.07-to-1 ratio

on the NYSE, and by a 2.07-to-1 ratio on the Nasdaq.

The S&P 500 posted 26 new 52-week highs and seven new lows,

while the Nasdaq Composite recorded 31 new highs and 255 new

lows.