The Dow Jones fell 0.18%, the Nasdaq index gave up 0.16% and the broader S&P 500 index 0.22%. The VIX index, which measures market volatility, rose 3.8% on Tuesday.

Yield on 3-month US government bonds rose to its highest level in 22 years, at 5.29%. The yield on 10-year US government Bonds stood at 3.73%, compared to 3.71% the previous day at the close.