The Dow Jones Industrial Average dropped 131.59 points, or 0.26%, to ‌51,349.92, the ⁠S&P 500 shed 12.85 points, or 0.17%, to 7,670.84 and the Nasdaq Composite slipped 22.84 points, or 0.08%, to 26,797.54

US stocks ended the session slightly lower on Tuesday, as government bond yields continued their ascent ahead of ​inflation and labour market data, while investors assessed comments from central bank officials for the path of interest rates.

The Dow Jones Industrial Average dropped 131.59 points, or 0.26%, to ‌51,349.92, the ⁠S&P 500 shed 12.85 points, or 0.17%, to 7,670.84 and the Nasdaq Composite slipped 22.84 points, or 0.08%, to 26,797.54.

Longer-dated US Treasury yields gained, with the 30-year bond hitting 5.6206%, its highest since June 2002. The yield on the benchmark 10-year Treasury bond jumped to 5.293% — its highest level since June 2007.

Stocks pared declines, however, as yields dropped from their earlier highs and shorter-duration yields were down on the day as oil prices declined on signs of a recovery in exports from the Middle East and comments from Federal Reserve Bank of New York President John Williams. Williams said the central bank has time to weigh ​the data before deciding when to hike interest rates again.

Expectations for a rate hike of at least 25 basis points from the central bank at its October meeting dropped to ​51.5%, according to CME FedWatch, in the wake of Williams’ comments, from around 70% earlier in the session.

After dropping from highs at the start ⁠of the month, oil prices have accelerated higher in recent days as hopes that an Iran-US peace deal may be on the horizon have diminished.

The rising prices of crude and diesel fuel ​have stoked inflation worries and pushed US Treasury yields higher. Central bank officials have also indicated more rate hikes might be needed if price pressures fail to moderate after the bank raised interest ​rates by 25 basis points this month.

Several key economic releases are due this week, including the Personal Consumption Expenditures Price Index from the Commerce Department on Wednesday, which could help shape the path of central bank policy. Labour market data, culminating in Friday’s government payrolls report, will be released throughout the week.

PCE tomorrow is going to be big, so we’ll see where that takes us, said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in ​New York. The amount of negativity from consumers here, especially with higher rates, higher gas prices, they’re getting squeezed — the consumers getting squeezed here, and we might start seeing stocks sell off, at least ​in the consumer names.