New Delhi, March 14 -- The US stock markets are facing a significant selloff, with the S&P 500 falling from a record high, touched three weeks ago, into the 10% correction territory.

Investors are worried that the escalating tariff war being waged by the United States could flare up inflation and tip the economy into recession, sending US stock indices lower. Apart from trade war fears, a major factor behind the crash on Wall Street, stretched valuations are also keeping risk-on sentiments in check.

According to Reuters data, the S&P 500 closed 10.1% below its February 19 record closing high on March 13, while Nasdaq confirmed it is in a correction by closing 10.4% down from record on March 6.

The US market fall has been driven by mult...