U.S. stocks closed lower Tuesday, amid record lows in the benchmark 10-year Treasury yield, as global growth concerns weighed.
The Dow Jones industrial average closed about 108 points lower after earlier falling 164 points, with Goldman Sachs contributing the most to declines.
"It's really just currency and yields. By watching currencies, watching yields, you get a pretty good sense of what's on investors' minds and right now it looks like slowing economic growth," said Jack Ablin, chief investment officer at BMO Private Bank.
Longer-end Treasury yields hit record lows, with the 30-year yield last around 2.15 percent. The 10-year yield touched an all-time low of 1.3570 percent, according to Reuters Tradeweb data going back to 1953.
The U.S. dollar index was more than half a percent higher, with the euro near $1.107 and the yen near 101.7 yen versus the greenback. Pound sterling traded near $1.304, around levels not seen in more than 30 years.
U.S. markets were closed Monday for the July 4 holiday, after the Dow Jones industrial average and S&P 500 recovered most of their post-Brexit losses to post their best week of the year so far.
"As of Friday's close in the U.S., that assumed Brexit was no big deal, that it was a non-event," said Peter Boockvar, chief market analyst at The Lindsey Group. "That was naive."
"I think we're taking our cue from Europe, weakness in European banks," he said.
European stocks closed mostly lower, with the German DAX off more than 1.8 percent. The STOXX Europe 600 Banks index traded more than 2.7 percent lower, tracking for its worst day in more than a week. The FTSE 100 closed about a third of a percent higher.
On Monday, the European Central Bank opened the door to state aid for euro zone banks, with Italy in talks with the European Commission over a plan to recapitalize Italian lenders with public money, Reuters reported.
Separately, Standard Life Investments, the fund arm of insurer Standard Life, suspended Monday all trading in its UK real estate fund, Reuters said. The decision was taken after an increase in redemption requests due to uncertainty following the EU referendum result, the firm said in a statement cited by the news wire.
Energy and materials closed nearly 1.9 percent lower to lead S&P 500 decliners. Financials was the third-greatest decliner, off 1.5 percent.
U.S. crude oil futures for August delivery settled down 4.88 percent or $2.39, at $46.60 a barrel. Natural gas prices fell roughly 7 percent.
The Nasdaq composite ended about 0.8 percent lower, after earlier falling more than 1 percent. Apple closed 0.9 percent lower, and the iShares Nasdaq Biotechnology ETF (IBB) ended nearly 1 percent lower.
Citi cut estimates for Apple's fiscal third and fourth-quarter earnings Tuesday, citing Brexit-related macroeconomic uncertainty, currency volatility and longer iPhone replacement cycles.