*

US stocks fall again but less sharply after Monday's

selloff

*

Treasury yields turn around as does gold

*

Oil prices bounce back

(Updates prices with late morning US trading)

By Sinéad Carew and Alun John

NEW YORK/LONDON, March 11 (Reuters) - After falling

sharply on Monday, equities were losing ground again on Tuesday,

though at a slower pace, as U.S. President Donald Trump said he

would double tariffs on Canadian metal imports, fuelling worries

that tariffs could help cause an economic recession.

But U.S. Treasury yields turned higher along with oil prices

even as Trump said on Tuesday that he had instructed his

commerce secretary to add an additional 25% tariff on all steel

and aluminum coming into the United States from Canada, bringing

the total tariff on those products to 50%.

On Monday the S&P 500 suffered its biggest one-day

drop this year, while the Nasdaq saw its biggest

single-day percentage drop since September 2022. This was in

reaction to President Trump's weekend Fox News interview, in

which he declined to rule out a recession resulting from his

trade policies, and talked about a "period of transition."

Adding to concerns about tariffs, Tuesday's data showed U.S.

small-business confidence dropped for a third straight month in

February, wiping away much of the gains notched in the aftermath

of Trump's November election victory.

Along with the confidence slump, Phil Blancato, chief market

strategist at Osaic Wealth in New York, pointed to guidance from

Delta Airlines and retailer Kohl's for a

softening of consumer spending ahead.

"You see all these headlines suggesting a slowing of the

U.S. economy so you're not getting the classic dead cat bounce

you'd want after a day like yesterday," said Blancato.

"You're not seeing a lot of bottom feeders come in just yet.

It's because the headlines haven't cleared up yet. There's still

a lot of uncertainty in a lot of areas and it's leading to a

lack of institutional buying power."

While investors will be hoping for some clarity on tariffs

by early April, Blancato noted that they are also anxiously

awaiting Wednesday's U.S. consumer price index reading for

February for information on inflation conditions.

A high reading would add to last month's

hotter-than-expected data, which included the biggest monthly

price gain since August 2023.

At 12:08 p.m. the Dow Jones Industrial Average was

down 483.32 points, or 1.15%, at 41,428.39, the S&P 500

had dropped 40.90 points, or 0.73%, to 5,573.66 and the Nasdaq

Composite was off 47.75 points, or 0.27%, at 17,420.81.

MSCI's gauge of stocks across the globe fell

6.31 points, or 0.76%, to 826.42. The pan-European STOXX 600

index fell 1.8%.

U.S. Treasury yields steadied, pulling away from five-month

lows hit earlier in the session.

The yield on benchmark U.S. 10-year notes rose

3.6 basis points to 4.249%, from 4.213% late on Monday.

The 30-year bond yield rose 4.1 basis points to

4.5804% and the 2-year note yield, which typically

moves in step with interest rate expectations for the Federal

Reserve, rose 0.8 basis points to 3.904%, from 3.896%.

In currencies, the U.S. dollar rose to a one-week high

against the Canadian dollar while the euro hit a new four-month

peak against the greenback on hopes for a German defence

spending deal.

The Canadian dollar weakened 0.26% to C$1.45 per U.S.

dollar.

The euro was up 0.82% at $1.0921 while against the

Japanese yen, the dollar strengthened 0.09% to 147.39.

Sterling strengthened 0.51% to $1.294.

Oil prices rose with help from some weakness in the dollar

, although gains were capped as concerns mounted over a

U.S. slowdown and the impact of tariffs on global economic

growth.

U.S. crude rose 1.17% to $66.80 a barrel and Brent

rose to $70.12 per barrel, up 1.21% on the day.

Gold prices gained after selling off in the prior day's

session with spot gold up 0.92% at $2,916.10 an ounce and

U.S. gold futures 0.81% higher at $2,914.50 an ounce.

In cryptocurrencies, bitcoin gained 2.36% to

$81,151.44.