Global equities sank on Tuesday with the S&P 500 confirming it was in a correction while U.S. Treasury prices rose as investors fled for safer assets as they worried that global trade tensions would boost inflation and slow growth after U.

The losses followed Trump's threat to impose hefty tariffs on European wines and alcohol, further escalating trade tensions.

The S&P 500 is now more than 10 percent below its last record high — a line in the sand for investors worried about a sell-off gathering steam.

Wall Street keeps shaking because of tariffs. Stocks jumped to a big early gain, gave it back and then went up again as a volatile week for the market rolls on. The competing drivers of the market were an encouraging inflation update and the retaliation by other countries following President Donald Trump's latest escalation in his