Oil fell after data showed the euro zone was in its longest recession ever, while a stronger dollar and rising U.S. refined products stocks put additional pressure on prices.
The Nikkei resumed its market out-performance on Wednesday, rising to a fresh five-and-a-half year high as a weaker yen hovers around the 102 handle while other Asian stock markets pared initial gains.
The yen fell against the dollar on Tuesday for a fourth straight session, hitting its lowest level in 4 1/2 years as signs that the U.S. economy is improving.
Brent crude oil prices fell after a global energy watchdog described world supplies as "comfortable" and analysts forecast a continued build in the U.S. crude inventory, while gasoline rose 1 percent on expected inventory draws ahead of the summer driving season.
The S&P and Dow closed at fresh all-time highs on Tuesday after widely followed hedge fund manager David Tepper said he is "definitely bullish" on stocks.
Gold prices settled lower on Tuesday, as economic optimism and another intraday record high in U.S. equities sapped bullion's safe-haven appeal.
European shares pared losses to close at five-year highs on Tuesday, after influential hedge fund manager David Tepper told CNBC he is "definitely bullish" on stocks.
The 5.4 percent earnings yield is considerably below its historical average, but nearly triple the 1.9 percent yield of the 10-year Treasury.
U.S. stock index futures signaled a lower open on Tuesday, as fears that China's central bank will not provide stimulus to boost its economy saw the Shanghai Composite fall to a one-week low.
U.S. Treasurys prices reversed the previous day's slide as U.S. stock markets appeared poised for a lower opening.
The strong rally this year is being met with a heightened level of supply, setting up a big bet that retail investors will keep buying what Wall Street is selling.
Shanghai stocks fell to a one-week low on Tuesday amid fears that the People's Bank of China would not provide monetary stimulus to support the economy while Asia's other equity markets were mixed ahead of Australia's budget release.
Japan's radical monetary policies has created the most volatile government bond market in the world, analysts say.
The dollar gained for a third straight session against the yen and euro on Monday as data showing a rise in U.S. retail sales assuaged fears of an economic slowdown.
Gold fell 1 percent on Monday as stronger U.S. retail sales data inspired economic hopes and reduced the safe-haven bid for gold.
Prices for U.S. Treasurys fell as data showed U.S. consumers unexpectedly increased their buying last month, suggesting underlying strength in the world's biggest economy.
Crude oil prices were hit by slowing oil demand in China and data showing the biggest drop for U.S. retail gasoline sales in more than four years.
Most Asian stock markets closed in positive territory on Monday with a weaker yen propelling Japan's benchmark Nikkei index to a fresh five-and-a-half-year peak, while the Shanghai Composite pared losses following a raft of lower-than-expected economic data from the mainland.
Prices for U.S. Treasurys fell on Friday, pushing yields to their highest levels in about a month in a half, after the dollar shot up past the key 100-yen mark and spurred selling in longer-dated government debt.
The yen tumbled to its lowest in more than four years against the dollar on Friday on data showing Japanese investors were buying more foreign assets.
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