*

Consumer confidence posts biggest drop in 3-1/2 years

*

Nvidia ( NVDA ) dips ahead of Wednesday earnings

*

Lilly up on launching higher-dose, discounted Zepbound

vials

(Updates to market close)

By Stephen Culp

Feb 25 (Reuters) - U.S. stocks struggled on Tuesday,

with the S&P 500 and the Nasdaq touching one-month lows as a

dour consumer confidence report put mounting economic

uncertainties into sharp relief and prompted a selloff.

"This is clearly a risk-off day and a continuation of a

risk-off month," said Peter Tuz, president of Chase Investment

Counsel in Charlottesville, Virginia.

"Many companies are expressing caution about the direction

of consumer spending at the moment and today's consumer

confidence number bears that out."

The mood of the consumer, who props up about 70% of U.S.

GDP, has dimmed considerably in February, according to The

Conference Board's consumer confidence index, which registered

its steepest monthly drop since August 2021.

Rising consumer uncertainties were laid bare by an 11.3%

plunge in the near-term expectations component, well below the

level associated with impending recession, suggesting Americans

are growing anxious about the potential negative economic impact

of the policies of President Donald Trump's administration.

Tuz said the political environment was not helping.

"Headlines have been pretty dramatic ... and as a result

consumers and maybe businesses are sitting on their hands to see

how things shake out before making major purchasing decisions or

other business decisions," Tuz said.

"There are just lots of reasons to put off buying things

today, including stocks."

Richmond Federal Reserve President Tom Barkin said on

Tuesday that current uncertainties call for a measured, cautious

approach to monetary policy.

Interest-rate futures imply the U.S. Federal Reserve will

hold its key interest rate steady for the first half of the

year, according to data compiled by LSEG.

The CBOE market volatility index, widely known as the

"fear index," spiked to its highest level since January 27.

The S&P 500 lost 27.33 points, or 0.46%, to end at

5,955.92 points, while the Nasdaq Composite lost 257.37

points, or 1.33%, to 19,029.56. The Dow Jones Industrial Average

rose 161.74 points, or 0.37%, to 43,622.95.

Nvidia ( NVDA ) dropped ahead of the chipmaker's

much-anticipated quarterly earnings report expected after the

bell on Wednesday, pulling the Philadelphia SE Semiconductor

index lower.

U.S. officials, in a bid to restrict Beijing's technological

capabilities, are aiming to restrict the quantity and types of

Nvidia ( NVDA ) chips that can be exported to China without a license,

according to a Bloomberg report.

Bitcoin weakness weighed on crypto stocks Coinbase

and MicroStrategy ( MSTR ).

Zoom Communications ( ZM ) slid following its disappointing

annual revenue forecast.

U.S.-listed shares of Li Auto jumped after the

company unveiled its first electric SUV.

Eli Lilly ( LLY ) advanced 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 after drug manufacturer Thermo

Fisher said it will buy the company's purification and

filtration business for about $4.1 billion.