The Dow Jones fell 0.69%, the Nasdaq index lost 1.26% and the broader S&P 500 index gave up 1.12%. The VIX index, which measures market volatility and investor anxiety, rose almost 8% on Tuesday.
The yield on 3-month US government bonds, it reached its highest level in 22 years, at 5.29%. There are only nine days left before June 1, when the United States may no longer be able to meet its commitments.