01:25 PM EDT, 08/20/2024 (MT Newswires) -- US equity indexes fell in midday trading Tuesday, paring strong recent gains, as volatility rebounded and government bond yields slumped.

The S&P 500 declined 0.3% to 5,593.2, with the Nasdaq Composite down 0.5% to 17,796.1 and the Dow Jones Industrial Average 0.2% lower at 40,825.7. Energy was the steepest decliner intraday, down 2.3%. Healthcare and consumer staples were among the gainers.

Last week was the best for the S&P 500 this year, with the other two indexes heading toward previous record highs. "One astonishing [statistic] is that the equal-weighted version of the S&P even hit an all-time high yesterday, which speaks to the breadth of the recovery, whilst the VIX index of volatility was down to a one-month low by the close," Jim Reid, the head of global fundamental credit strategy at Deutsche Bank, said in a note Tuesday.

The CBOE Volatility Index (VIX) rebounded 6.2% to 15.71, following a sharp decline last week from a record intraday level of 65.7. The fear gauge has scaled that peak only twice in the past 35 years -- during the financial crisis and the COVID-19 pandemic, the Wells Fargo Investment Institute said in a note.

The volatility index has achieved two records recently -- the fastest 25-plus point spike from lows and the fastest retracement from that spike in history, UBS said in a note.

On Tuesday, Treasury yields fell, with the 10-year down 4.3 basis points to 3.82%, and the two-year rate slid 6.8 basis points to 4%, a potential concern for investors as slumping government bond yields accompanied the recent spike in volatility. Atlanta Fed President Raphael Bostic and Federal Reserve's Vice Chair for Supervision Michael Barr will be on the speaking circuit later on Tuesday.

In company news, Palo Alto Networks ( PANW ) , late Monday, reported a surprise increase in fiscal Q4 earnings as the cybersecurity firm's revenue came in stronger than expected. Its shares jumped 8.2% intraday, the leader on the S&P 500 and the Nasdaq.

Estee Lauder ( EL ) reported mixed fiscal Q4 results, with profit surpassing expectations, RBC Capital Markets said in a note Tuesday. The guidance for fiscal 2025 missed consensus, given conservative estimates for growth, particularly in China. Estee Lauder ( EL ) shares slumped 4.8% intraday, among the worst performers on the S&P 500.

West Texas Intermediate crude oil declined 0.4% to $74.05 a barrel.

"The oil market's recent poor form is continuing this week as a ceasefire in Gaza grows more likely and China demand weakness shows little sign of recovery," according to a note from Norway's Rystad Energy. "If the market fundamentals don't break this bearish trend soon, OPEC+ may be hesitant to unwind their voluntary cuts anytime soon."

Gold rose 0.2% to $2,546.80 an ounce, and silver climbed 0.6% to $29.91.