By Anora Mahmudova and Carla Mozee, MarketWatch

Oil and gold prices advance as dollar weakens

U.S. stocks moved lower on Tuesday, adding to the previous day's losses as a continued rise in government bond yields triggered selloffs in global equity markets.

The S&P 500 (SPX) fell 13 points, or 0.6%, to 2,091, with losses across the board. The Dow Jones Industrial Average (DJI) dropped 141 points, or 0.8%, to 17,974. The Nasdaq Composite (RIXF) shed 47 points, or 1%, to 4,945.

U.S. bond prices recovered somewhat from an earlier selling bout following a steep decline by European bonds. Yields rise as bond prices fall.

Some analysts have pointed to a rise in inflation expectations in the eurozone as a factor driving bond prices down and yields higher. The widely watched yield on Germany's 10-year bund (http://www.marketwatch.com/story/german-bond-yields-surge-amid-european-bond-sellof-2015-05-12) leapt to nearly 0.7% Tuesday, though that level remains very low by historical standards.

"Wall Street is being pulled around by the sentiment on the bond markets. The latest rise in Treasury yields is adding to pressure on equities. Again with little on the economic calendar today, we could see this continue," said Richard Perry, market analyst at Hantec Markets, in a note.

The yield on the 10-year Treasury note on Tuesday climbed to 2.29%, the highest level (http://www.marketwatch.com/story/treasury-yields-rise-to-highest-level-since-nov-21-2015-05-12) since November 21, according to Tradeweb.

AOL/Verizon: AOL (AOL) shares jumped 17% after the company agreed to be bought by Verizon (http://www.marketwatch.com/story/aols-stock-soars-after-agreeing-to-be-acquired-by-verizon-2015-05-12)(VZ) in a deal valued at $4.4 billion. Verizon expects to fund the purchase with cash on hand and commercial paper. Verizon's stock slipped 1.7%.

Data: The National Federation of Independent Business said its small-business optimism index rose 1.7 points to 96.9 in April, though the reading is still the second-worse since October.

March job openings declined to 4.99 million from February's 5.14 million.

Federal Reserve member John Williams will give his assessment about the prospects for the U.S. economy at 12:45 p.m. during a speech at the NY Association for Business Economics in New York. In a CNBC interview Monday, Williams said the first quarter wasn't as weak as it appears (http://www.marketwatch.com/story/feds-williams-finds-a-reason-to-be-cheerful-about-first-quarter-2015-05-11).

Stocks to watch:l International Flavors & Fragrances Inc.(IFF) said first-quarter profit rose 20% (http://www.marketwatch.com/story/international-flavors-profit-rises-20-2015-05-12), despite the strong dollar's impact on sales. But shares fell 3%.

Online real estate services firm Zillow Group Inc. (ZILLOW.XX) is forecast to report a first-quarter loss of 12 cents a share after the bell, according to a FactSet consensus estimate.

Gap Inc.(GPS) shares dropped more than 3% after the clothing retailer's first-quarter revenue missed FactSet analysts' estimates.

Pall Corporation(PLL) shares soared 20% after news reports that it is auctioning itself off to the highest bidder. Thermo Fisher Scientific (TMO) and Danaher (DHR) are said to be among the bidders.

Other markets: Oil futures (CLM5) shot higher and gold prices (http://www.marketwatch.com/story/gold-buoyed-as-global-bonds-drop-2015-05-12)(GCM5) advanced as the U.S. dollar (DXY) fell.

In Europe, the Stoxx 600 stumbled 1.5%. Greece worries intensified after the country's finance minister said it may run out of cash in two weeks. In Asia, the Shanghai Composite fell 1.1%, but Japan's Nikkei Average edged up about 4 points.

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