All eyes on Wednesday on the U.S. CPI data.
The Dow fell 0.3%, S&P 500 up 0.3%, and Nasdaq was up 1% on Tuesday, with big growth shares rising after the previous day's selloff.
The bank shares fell along with the yields. The benchmark 10-year note yield dropped from more than a three-year high to below 3%.
The Dow ended lower and the day's trading was choppy with major indexes moving between gains and losses as investors were nervous ahead of the release of Wednesday's U.S. consumer price index and Thursday's producer prices data.
The investors are looking for signs that inflation is peaking.
The recent selloff in the market was caused by concerns that the U.S. Federal ReserveFederal Reserve might have to move more aggressively to curb inflation. There are a number of other concerns that have added to the pressure.
Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, said it was just fear-based selling.
He said that it could not be the Fed's intention to raise rates to stave off inflation because we've seen that before. Dollarhide said that investors were worried about everything from rates and inflation to the war in Ukraine, supply chain problems and China's COVID 19 lockdowns.
The shares of Apple Inc went up by 1.6% and gave the S&P 500 and Nasdaq their biggest boosts.
The Dow Jones Industrial Average fell by 84.96 points, or 0.26%, to 32,160. The S&P 500 gained 9.81 points, or 0.25%, to 4,001, on the back of the S&P 500. 05 and the Nasdaq Composite added 114.42 points, or 0.98%, to 11,737. Technology and growth stocks with valuations that depend more heavily on future cash flows have been hardest hit in the recent selloff. The Nasdaq is down about 25% for the year.
S&P 500 technology rose 1.6% on the day and led S&P 500 sector gains. The S&P 500 growth index was up 0.9%, while the S&P 500 value index was down 0.4%.
The Cleveland Fed President Loretta Mester, who said that the US economy will experience turbulence from the Fed's efforts to bring down inflation at more than three times above its goal, and recent volatility in the stock market would not deter policymakers.
In a speech Tuesday, U.S. President Joe Biden said he was considering removing Trump-era tariffs on China as a way to lower prices for goods in the United States.
Among the day's gains, Pfizer Inc shares rose 1.7% after it said it will pay $11.6 billion for Biohaven Pharmaceutical Holding Co. Biohaven shares went up 68.4%.
Peloton Interactive Inc lost 8.7% as the fitness equipment maker warned that the business was thinly capitalized after it posted a 23.6% slide in quarterly revenue.
The US exchange volume was 15.45 billion shares, compared to the 12.55 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 1.36 to 1 ratio, on Nasdaq, a 1.34 to 1 ratio favoring decliners.
The S&P 500 posted 1 new 52 week highs and 63 new lows; the Nasdaq Composite had 19 new highs and 1,066 new lows.