By STAN CHOE, Associated Press Business Writer

NEW YORK (AP) — U.S. stock indexes are drifting on Tuesday, as momentum slows for Wall Street after it rallied from a deep hole nearly all the way back to its all-time high set earlier this year.

The S&P 500 was down 0.3% in early trading but still within 3.3% of its record. The Dow Jones Industrial Average was down 55 points, or 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.5% lower.

Treasury yields drifted higher in the bond market, while the value of the U.S. dollar was relatively stable against other currencies following a brief jolt Monday morning after Moody’s Ratings said the U.S. government no longer deserves a top-tier credit rating because of worries about its spiraling debt.

Stocks of companies in the travel industry fell to some of the market’s worst losses, as doubts continue about how much U.S. households will be able to spend on vacations. Norwegian Cruise Line fell 3%, Carnival lost 2.8% and MGM Resorts dropped 1.6%.

Home Depot added 1.3% after it reported better revenue than analysts expected for the start of the year, though its profit came up just short of forecasts. Perhaps more importantly for Wall Street, the home-improvement retailer also said it’s sticking with its forecasts for profit and sales growth over the full year.

That’s counter to a growing number of companies, which have recently said tariffs and uncertainty about the economy are making it difficult to guess what the upcoming year will bring. President Donald Trump has launched stiff tariffs against trading partners, only to delay or roll many of them back. Traders are hopeful that Trump will eventually lower his tariffs after reaching trade deals with other countries, but that’s not a certainty.

Target and Home Depot rival Lowe’s will report their latest results on Wednesday.

In the bond market, the yield on the 10-year Treasury rose to 4.50% from 4.46% late Monday. The two-year yield, which more closely tracks expectations for action by the Federal Reserve, edged up to 3.98% from 3.97%.

Concern still remains that Trump’s tariffs could push the U.S. economy into a recession, even if it’s held up OK for the time being. If a recession does happen, the U.S. government may have less room to offer support for the economy through big spending plans or direct stimulus checks to households than in prior downturns. That’s because the U.S. government’s debt is so much higher now, and it could be set to get even bigger with Washington debating more cuts to taxes, as Moody’s cited in its downgrade.

If the U.S. government can’t offer as much fiscal support for the economy, that could make the next recession deeper and last longer, according to James Egelhof, chief U.S. economist and other strategists at BNP Paribas. That could put more pressure on the Federal Reserve to prop up the economy by itself through lower interest rates.

Other central banks around the world have already begun cutting interest rates.

China’s central bank made its first cut to its loan prime rates in seven months in a move welcomed by investors eager for more stimulus as the world’s second-largest economy feels the pinch of Trump’s higher tariffs. Tuesday’s cuts probably won’t be the last this year, Zichun Huang of Capital Economics said in a report.

The Reserve Bank of Australia reduced its benchmark interest rate by a quarter percentage for a second time this year, to 3.85%, judging inflation to be within its target range. The earlier reduction, in February, was Australia’s first rate cut since October 2020.

Following the cuts, stock indexes rose across much of the world. Hong Kong’s Hang Seng jumped 1.5% for one of the bigger gains.

Shares in China’s CATL, the world’s largest maker of electric batteries, jumped 16.4% in its Hong Kong trading debut after it raised about $4.6 billion in the world’s largest IPO this year. Its shares traded in Shenzhen, mainland China’s smaller share market after Shanghai, gained 1.2% after dipping earlier in the day.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.