By Kate Gibson, MarketWatch NEW YORK (MarketWatch) -- U.S. stocks lost most of their gains to end near neutral on Tuesday, as a rise in the dollar amid deficit worries took the steam out of early enthusiasm over a U.S. deal to extend tax cuts. Commodities also shed early gains to close lower, and the euro slipped as Ireland voted on a tough austerity package. "The market has been led by basic materials and oil, and when the dollar goes down, commodities and other dollar-denominated assets like equities go up. So the market tends to fade when the dollar strengthens," said Art Hogan, chief market strategist at Jefferies & Co. The greenback turned higher against other currencies, especially the euro, as the Irish parliament readied to vote on the harshest austerity budget in Ireland's history. Also supporting the dollar, Treasury yields surged on worries that the agreement to extend tax cuts would widen the U.S. deficit. and The major indexes had maintained healthy gains for much of the day as Wall Street embraced President Barack Obama's decision to compromise on tax cuts. But by then end of the day , the Dow Jones Industrial Average (DJI) ended down 3.03 points at 11,359.16, more than 90 points off its high for the day. Of the Dow's 30 components, 17 were higher, led by General Electric Co. (GE), up 2%. 3M led decliners in the index, ending off 3.1%. The S&P 500 Index (SPX) climbed 0.63 point, or 0.1%, to end at 1,223.75, with industrials pacing gains that included all 10 of the index's industry groups. The Nasdaq Composite (RIXF) rose 3.57 points, or 0.1%, to 2,598.49. Advancers edged just ahead of decliners on the New York Stock Exchange, where volume topped 1.6 billion. Commodity prices started higher but reversed course, with crude slipping below $90 a barrel after breaking through that level for the first time in 26 months and gold falling $7.1 to finish at $1,409 an ounce on the Comex division of the New York Mercantile Exchange. and The dollar strengthened late in the session, helped by a selloff in Treasurys that lifted yields on the 10-year note (UST10Y) 21 basis points to 3.14%, the biggest increase on a closing basis since mid-2009. The euro fell to $1.3257, off a session high over $1.34. Capital concerns Late Monday, President Obama announced a deal to extend Bush-era tax cuts for the higher-income bracket as well as middle-class Americans for two years. The agreement, which still must be sold to congressional Democrats, had Obama compromising on rates for the wealthiest Americans in exchange for a $120 billion break on payroll taxes and the extension of unemployment benefits. . "The two-year extension was expected, but we didn't expect the payroll tax cut or the accelerated depreciation," said Linda Duessel, equity strategist at Federated Investors. The tax-cut deal spurred thinking among investors that another roadblock hindering economic recovery had been removed, said Robert Pavlik, chief investment officer at Banyan Partners. "I don't necessarily agree," said Pavlik, who expressed doubts about whether the tax break would drive those in the upper-income bracket to buy more holiday sweaters or flat-screen TVs. While dubious about changing the behavior of "the guy earning $250,000 because he's working on an investment-banker deal," the tax proposal will help the small-business owner being treated as a corporation, Pavlik said. Solid earnings from companies including AutoZone Inc. (AZO) provided a support for sentiment, and "the fact that the government is removing themselves from Citigroup added another generally positive note for the market," Pavlik said. AutoZone on Tuesday reported quarterly earnings that topped estimates, with the auto-parts chain benefiting from the downturn that had many car owners resorting to repairs instead of buying a new vehicle. Late Monday, the Treasury Department said it had reached an agreement to sell about $2.4 billion in shares of Citigroup Inc. (C) common stock, its remaining holdings in the bank. In the end, taxpayers will make a $12 billion profit on the federal bailout of Citigroup, which drew $45 billion in taxpayer support in late 2008 in a bailout begun under the Bush administration. On Tuesday, 3M Co. (MMM) hiked its earnings forecast for 2011, with the industrial conglomerate and Dow component saying it also expects to expand through acquisitions. And, China's official newspaper on Tuesday said the country would likely boost interest rates in the coming days in a continuing effort to tame inflation.