This came as investors reversed bets made against the greenback on speculation that the Fed would not hike interest rates anytime soon.
Crude oil prices slid on a strong U.S. dollar and high stocks of physical oil, though prices remained on track for a monthly gain.
Gold slid to a two-month low on Wednesday after forecast-beating U.S. jobs data.
U.S. stock index futures indicated a flat open Wednesday following the release of the ADP's private sector payroll report.
U.S. stocks closed lower Tuesday, with utilities falling 1 percent, as investors analyzed strong consumer data.
U.S. sovereign bonds fell on Tuesday, with yields range-bound as the month draws to a close.
European stock indexes closed higher on Tuesday, with the exception of the FTSE 100, which was knocked by the weak performance of mining stocks.
Most Asia markets finished higher on Tuesday, while Japanese shares edged down in a muted reaction to better-than-expected economic data.
The dollar hovering near a two-week high against a basket of currencies with investors focused on the next set of U.S. data.
Oil prices fell more than 1 percent on Tuesday as the dollar strengthened and investors braced for an expected weekly build in U.S. stockpiles.
This came after Fed officials sounded a hawkish note on interest rates at the weekend, boosting the dollar.
Wall Street looked set to open higher on Tuesday, with futures for the Dow Jones industrial average trading up.
Stocks closed higher, with financials leading, as investors looked for clues about the Federal Reserve's next move.
U.S. Treasury notes rose on Monday, amid U.S. personal spending and inflation data.
European stocks traded lower on Monday as the U.S. dollar strengthened after hawkish comments from U.S. Federal Reserve Chair Janet Yellen in a closely watched speech Friday.
Japanese shares climbed, boosted by a weaker yen, while other Asia markets slipped on Monday in the wake of the Jackson Hole conclave.
The dollar rose after senior Federal Reserve officials bolstered expectations that U.S. interest rates will rise soon.
Oil prices fell on Monday, pressured by high output from Middle East OPEC members and as a stronger U.S. dollar weighed on commodities.
Gold rebounded from a near five-week low as the dollar dropped on Monday, shrugging off earlier pressure.
U.S. stock-index futures pointed to a slightly higher open, after the release of spending and inflation data.