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Indexes down: Dow 0.37%, S&P 500 0.47%, Nasdaq 0.57%

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Trump's tariff announcement at 4:00 pm

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February factory orders data due at 10:00 am

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Tesla falls after bigger-than-expected drop in Q1

deliveries

(Updates with market open prices)

By Sruthi Shankar and Pranav Kashyap

April 2 (Reuters) - Wall Street's main indexes fell on

Wednesday as investors worried about the potential impact of

U.S. President Donald Trump's sweeping tariffs on the global

economy, corporate earnings and inflation.

Details of Trump's "Liberation Day" tariff plans were still

being formulated and closely held ahead of a White House Rose

Garden announcement ceremony scheduled for 4 p.m. ET (2000 GMT).

Trump has said that his reciprocal tariffs aim to equalize

the comparatively lower U.S. tariff rates with those imposed by

other nations. But the format of the duties was unclear, with

reports that Trump was considering a 20% universal tariff.

The uncertainty around the specifics of the tariffs is

heavily weighing on investors, prompting them to continue

reducing their allocations to the U.S., said Chris Beauchamp,

chief market analyst at IG Group.

"If there are hints that they're going for a less draconian

sort of tariffs, we could see some relief," he added.

At 09:39 a.m. the Dow Jones Industrial Average

fell 156.51 points, or 0.37%, to 41,833.45, the S&P 500

lost 26.55 points, or 0.47%, to 5,606.52 and the Nasdaq

Composite lost 99.07 points, or 0.57%, to 17,350.82.

The domestically focused Russell 2000 index was down 1.3%.

All 11 S&P 500 sub-sectors were in the red, with the

consumer discretionary sector leading losses, dragged

down by a near 6% drop in Tesla shares after the EV

maker reported a 13% drop in first-quarter

deliveries

.

Tech stocks, which have been at the forefront of the selloff

this week, slipped, with Nvidia down 1.7% and

Amazon.com slipping 1.1%.

Trump Media & Technology Group ( DJT ) slid 6.1% after the

operator of Truth Social filed papers with the U.S. Securities

and Exchange Commission that would allow President Donald

Trump's trust to sell shares in the company that could be worth

$2.3 billion.

U.S. stocks have come under sharp selling pressure this

year, with the benchmark S&P 500 and tech-heavy Nasdaq

falling 10% from their record highs last month and

confirming a correction due to uncertainty around tariffs.

The S&P 500 shed 4.6% in the first quarter, its biggest

three-month decline since July 2022.

On the data front, U.S. private payrolls growth accelerated

in March. Factory orders data are scheduled for release at 10:00

a.m. ET.

Focus, however, is on the crucial monthly non-farm payrolls

data as well as Federal Reserve Chair Jerome Powell's speech on

Friday for insights into the health of the U.S. economy and

trajectory of interest rates.

Traders are betting on three rate cuts from the Fed this

year but the prospect of tariff-induced inflationary pressures

has clouded the outlook.

Declining issues outnumbered advancers for a 2.41-to-1 ratio

on the NYSE and a 1.59-to-1 ratio on the Nasdaq.

The S&P 500 posted five new 52-week highs and eight new

lows, while the Nasdaq Composite recorded seven new

highs and 187 new lows.