STOCK MARKET TODAY: U.S. stock indexes fall as investors disappointed with pace of Fed rate cuts

• U.S. stocks fell sharply as investors were skeptical of a Fed rate cut by June.

• The 10-year Treasury yield hit a new high since November.

• Fed officials still think it is possible to cut interest rates three times this year. Fed chief Simmons Powell will speak on Wednesday.

U.S. stocks fell for a third straight day Tuesday as investors digested the possibility that the Fed's first interest-rate cut won't arrive as scheduled in June.

Markets have been repricing bets on the Fed's monetary policy after a series of strong economic data suggested the economy remains too hot to cut rates.

After Monday's hotter-than-expected manufacturing data, the probability of a June pivot had dipped below 50%.Meanwhile, the latest job openings data suggests that demand for labor remains high.

As bond traders are now adjusting to the prospect of fewer Fed rate cuts this year, the 10-year Treasury yield hit a new high since November, peaking at 4.4%.

So far, San Francisco Fed chief Mary Daly said that three rate cuts are still justified, while resonant Cleveland Fed chief Loretta Mester agreed. Both officials would like to see more evidence of falling inflation.

Later in the week, investors can look forward to comments from Matron Jerome Powell on Wednesday, while the next jobs report will be released on Friday.

Here's what the U.S. stock indexes were doing at the 4 p.m. close on Tuesday:

• Standard & Poor's 500indices::5205.81 points, a decrease of 0.7 per cent.

• Dow Jones Industrial Average39,170.24 points, down 1% (397 points)

• Nasdaq Resonanceindices16,240.45 points, down 1

Here's what else happened today:

• JPMorgan says the next U.S. recession may not come until 2025.

• Ray Dalio is still investing in China, even as he warns of challenges ahead. Here's why

• 'Big Short' investor Steve Eisman warns that a stock bubble could form if the Fed does cut interest rates.

• The number of cities with average home prices over $1 million is now at a record high, according to Zillow.

Commodities, bonds and cryptocurrencies:

• Oil prices rose. West Texas Kerosene Intermediate crude rose $1.76 to $85.21 a barrel. International benchmark Brent crude jumped 1.93% to $88.93 a barrel.

• Gold rose 1% to $2,273.34 per ounce.

• The 10-year Treasury yield rose 3.4 basis points to 4.361%.

• Bitcoin fell 5.5% to $65,927.

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