(Updates to 16:04 EDT)

By Stephen Culp

NEW YORK, May 21 (Reuters) - Wall Street ended modestly

higher and U.S. Treasury yields dipped on Tuesday amid the

doldrums ahead of a holiday weekend and a lack of substantial

market catalysts.

All three major U.S. indexes advanced and the S&P 500 and

the Nasdaq reached all-time closing highs in advance of Nvidia

Corp's ( NVDA ) quarterly results and in anticipation of the

release of the minutes U.S. Federal Reserve's most recent

monetary policy meeting, both expected on Wednesday.

"A lot of people are just waiting for Nvidia ( NVDA ) to report,"

said Robert Pavlik, senior portfolio manager at Dakota Wealth in

Fairfield, Connecticut. "And it shouldn't have a broad effect,

but it will, it will influence on how the market trades."

"There's been so much emphasis placed on AI, every company

seems to be talking about incorporating it into their

operations," Pavlik added.

Fed Governor Christopher Waller on Tuesday calmed fears of a

rate hike, saying recent economic data indicates the Fed's

restrictive policy is working as directed.

Atlanta Fed Chair Raphael Bostic said the central bank needs

to exercise caution ahead of its first rate cut to lead to

pent-up spending and send inflation "bouncing around."

Minutes from the Federal Open Markets Committee's most

recent meeting are due to be released on Wednesday, and they

will be parsed for clues regarding timing and extent of

policy-easing this year.

"(The Fed) is willing to think about rate cuts but we're not

there yet, those are the same thoughts we took away from their

last meeting," Pavlik said. "It's akin to asking your parents to

take you to Disney World and they say 'we'll think about it.' At

least they're not saying 'no.'"

The Dow Jones Industrial Average rose 66.22 points,

or 0.17%, to 39,872.99, the S&P 500 gained 13.28 points,

or 0.25%, to 5,321.41 and the Nasdaq Composite added

37.75 points, or 0.22%, to 16,832.62.

European shares ended slightly lower, easing back from

record highs as investors, cautious over central bank policy,

awaited economic data.

The pan-European STOXX 600 index lost 0.18% and

MSCI's gauge of stocks across the globe shed

0.03%.

Emerging market stocks lost 0.79%. MSCI's broadest index of

Asia-Pacific shares outside Japan closed 0.91%

lower, while Japan's Nikkei lost 0.31%.

U.S. Treasury yields dipped as investors awaited the Fed

minutes, eager for any clues regarding the timing of rate cuts.

Benchmark 10-year notes last rose 6/32 in price

to yield 4.4139%, from 4.437% late on Friday.

The 30-year bond last rose 11/32 in price to

yield 4.552%, from 4.573% late on Friday.

The dollar held firm against a basket of world currencies,

after investors parsed commentary of Fed officials.

The dollar index rose 0.06%, with the euro

down 0.01% at $1.0854.

The Japanese yen strengthened 0.05% versus the greenback at

156.20 per dollar, while Sterling was last trading at

$1.2709, up 0.04% on the day.

Cryptocurrencies climbed amid signs that the U.S. Securities

and Exchange Commission may approve a spot ether exchange-traded

fund.

Ethereum was last up 6.3%, while bitcoin reversed an earlier

gain, inching 0.2% lower.

Oil prices dipped, extending losses as the prospect of

lingering inflation and "higher for longer" interest rates

raised concerns over dampening demand.

U.S. crude dropped 0.68% to settle at $79.26 per

barrel and Brent settled at $82.88 per barrel, down

0.99% on the day.

Gold prices backed away from an all-time high as the

greenback held its ground.

Spot gold dropped 0.1% to $2,422.58 an ounce.