Stocks slide on poor earnings, bearish economic data
China talks stimulus, but economic damage already done
Euro near 4week high as Lagarde flags July rate hike

NEW YORKLONDON, May 24 Reuters Shares slid worldwide on Tuesday as supply chain woes and surging costs hurt corporate earnings and manufacturing output slowed, while Treasury yields dipped as the weakness in equities revived a safehaven bid for U.S. government debt.

The stock market39;s twoday relief rally ended as investors worried about slowing economies. Corporate profit margins have been squeezed, with soaring inflation forcing consumers to cut discretionary spending.

U.S. and euro zone business activity slowed in May. SP Global attributed the decline in its U.S. Composite PMI Output to elevated inflationary pressures, a further deterioration in supplier delivery times and weaker demand growth.

Surging freight and raw material prices led Abercrombie Fitch Co to say it will face headwinds until at least yearend, a day after Snapchat parent Snap Inc said the U.S. economy worsened faster than expected in April. 

The economy likely will slump as the Federal Reserve hikes interest rates to stamp out inflation, said David Petrosinelli, senior trader at InspereX.

It39;s really all about a hard landing and the Fed really being boxed in the corner with only demandside tools to help, he said. They really need to squash demand.

MSCI39;s gauge of stocks across the globe closed down 0.91. The panEuropean STOXX…