*

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

*

Indexes off: Dow 1.28%, S&P 500 1.26%, Nasdaq 1.76%

(Updates to mid-afternoon)

By Stephen Culp

NEW YORK, March 13 (Reuters) - Wall Street resumed its

slide on Thursday as 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

sharply lower, with losses in tech and tech-related megacap

shares dragging the Nasdaq down most.

The tech-laden index was last down 1.8%.

The S&P 500 is on the verge of closing 10% below its

February 19 record closing high, which would confirm 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.

The Dow Jones Transportation index, widely viewed as

a barometer of U.S. economic health, is currently more than 19%

below its November 25 record closing high; dipping 20% or more

below that level would confirm the index is in a bear market.

"Investors are still in a bearish mindset and picking and

choosing their opportunities to sell down portfolios," said

Chuck Carlson, chief executive officer at Horizon Investment

Services in Hammond, Indiana.

"There's still a lot of uncertainty concerning the economy,"

Carlson added. "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.

The Dow Jones Industrial Average fell 530.21 points,

or 1.28%, to 40,820.92, the S&P 500 lost 70.78 points, or

1.26%, to 5,528.52 and the Nasdaq Composite lost 311.56

points, or 1.76%, to 17,337.42.

All 11 major sectors in the S&P 500 were in negative

territory, with consumer discretionary and

communication services falling the most.

Intel ( INTC ) jumped 15.4% after the chipmaker appointed

industry veteran Lip-Bu Tan as its chief executive officer.

Adobe dropped 12.8% 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 up 4.0%.

Declining issues outnumbered advancers by a 2.87-to-1 ratio

on the NYSE. There were 45 new highs and 255 new lows on the

NYSE.

On the Nasdaq, 1,116 stocks rose and 3,176 fell as declining

issues outnumbered advancers by a 2.85-to-1 ratio.

The S&P 500 posted no new 52-week highs and 35 new lows

while the Nasdaq Composite recorded 14 new highs and 261 new

lows.