New York (CNN Business) The Dow and broader stock market fell back from Monday's sharp gains as investors worried about recession warning signs in the bond market.

All three major indexes finished in negative territory and are on track to end the month of August in the red.

Dow INDU S&P 500 SPX Nasdaq Composite COMP Theclosed 121 points, or 0.5% lower, while theandboth finished down 0.3%.

With three trading days left in the month of August, the Dow is on pace for a 4% drop. The S&P and the Nasdaq are looking at a 3.7% and 4.3% drop this month, according to Refinitiv.

Bond yields continued to fall as demand for safe havens like Treasuries stayed elevated. The 10-year bond yield, last at 1.4761%, dropped to a fresh three-year low. The 2-year and 10-year yield curves remain inverted, flashing a historical recession indicator. Earlier Tuesday, the 3-month and 10-year yield curves were at their most inverted level since 2007, according to Refinitiv.