Dow and S&P 500 retreat as yields edge up

The Dow fell 157.85 points, or 0.42%, to 37,525.16. The S&P 500 lost 7.04 points, or 0.15 %, at 4,756.50 and the Nasdaq gained 13.94 points, or 0.09 %, at 14,857.71.

NEW YORK: The S&P 500 and Dow lost ground and closed lower on Tuesday, pressured by a modest rise in Treasury yields as investors assessed the timing and size of any Federal Reserve interest rate cuts in 2024 ahead of inflation data this week.

Expectations the central bank could begin cutting rates as soon as March have been slowly decreasing, with CME's FedWatch Tool showing a 65.7% chance for a cut of at least 25 basis points (bps) for the month, down from 79% a week ago.