NEW YORK, New York - U.S. stocks were under pressure Tuesday as money markets roiled over the failure of lawmakers to resolve the debt ceiling debacle.

One-month U.S. Treasury yields soared to 5.88 percent at one point as investors got the jitters over the potential of a U.S. debt default if an agreement to increase the $31.4 trillion borrowing limit is not increased.

"The base expectation, at least through the lens on how capital markets are performing, is that there will be some agreement to extend the debt ceiling, either on a short-term basis or something that would allow for a more normal extension," Bill Northey, senior investment director at U.S. Bancorp in Helena, Montana told Reuters Tuesday.

The Nasdaq Composite fared worse, diving 160.53 points or 1.26 percent to close Tuesday at 12,560.25.

The Dow Jones industrials shed 231.07 points or 0.69 percent to 33,051.51.

The Standard and Poor's 500 dropped 47.05 points or 1.12 percent to 4,145.58.

The Top 40 USD Net TRI Index stood at 4,000.80, showing a decline of 60.53 points or 1.49 percent.

The Russell 2000 index closed at 1,787.71, down by 7.67 points or 0.43 percent.

The CBOE Volatility Index, known as the VIX, closed at 18.63, indicating an increase of 1.42 points or 8.25 percent.

The NYSE COMPOSITE (DJ) index closed at 15,172.27, down by 146.58 points or 0.96 percent.

The NYSE AMEX COMPOSITE INDEX closed at 4,020.10, showing an increase of 56.12 points or 1.42 percent.

The U.S. dollar predictably moved higher on the uncertainty. The Euro weakened sharply to 1.07673, representing a decline of 0.42 percent.

The Japanese yen inched down 0.02 percent to 138.61.

The Canadian dollar also edged down 0.02 percent to 1.3506, while the British pound fell 0.22 percent to 1.2409.

The Swiss franc dived 0.46 percent to 0.9018.

The Australian dollar experienced a sharp decline of 0.66 percent to finish Tuesday around 0.6608.

Across the Tasman, the New Zealand dollar also weakened against the dollar, with the exchange rate finishing at 0.6247, down by 0.63 percent.

In a day of trading marked by fluctuations, global stock markets closed with mixed results on Tuesday. In the end, however, the losers outranked the gainers by a wide margin, reflecting the uncertain sentiment among investors, particularly in relation to the ever-recurring U.S. debt ceiling issue.

The FTSE 100, representing the UK stock market, concluded the day at 7,762.95 points, witnessing a slight dip of 8.04 points or 0.10 percent.

In Europe, the ESTX 50 PR.EUR, representing the Eurozone, closed at 4,342.38 points, experiencing a decrease of 43.25 points or 0.99 percent.

The Euronext 100 Index, tracking the performance of the Eurozone's top 100 companies, concluded at 1,366.47 points, down 12.52 points or 0.91 percent.

Similarly, the DAX PERFORMANCE-INDEX, which tracks the performance of the German stock market, closed at 16,152.86 points, showing a decline of 71.13 points or 0.44 percent.

The CAC 40, France's leading stock market index, experienced a more significant setback, finishing the day at 7,378.71 points, down 99.45 points or 1.33 percent.

Belgium's BEL 20 index closed at 3,731.41 points, witnessing a slight decline of 5.16 points or 0.14 percent.

The MOEX Russia Index closed at 2,222.51 points, down 4.14 points or 0.19 percent.

In Asia, the Nikkei 225, Japan's most prominent stock index, ended at 30,957.77 points, displaying a decline of 129.05 points or 0.42 percent.

The HANG SENG INDEX, representing Hong Kong's stock market, concluded at 19,431.25 points, indicating a loss of 246.92 points or 1.25 percent.

Moving on to China, the SSE Composite Index, tracking the performance of the Shanghai Stock Exchange, closed at 3,246.24 points, experiencing a decline of 50.23 points or 1.52 percent. The Shenzhen Index, meantime, closed at 11,012.58 points, down 114.46 points or 1.03 percent.

Australia's S&P/ASX 200, an important benchmark for the Australian stock market, concluded at 7,259.90 points, showing a marginal decline of 3.40 points or 0.05 percent. Meanwhile, the Australian ALL ORDINARIES, another important benchmark in the country, finished at 7,447.40 points, indicating a marginal decline of 3.30 points or 0.04 percent.

Singapore's STI Index bucked the trend, closing at 3,218.08 points, with a modest gain of 6.99 points or 0.22 percent.

India's S&P BSE SENSEX closed at 61,981.79 points, gaining 18.11 points or 0.03 percent.

The IDX COMPOSITE, tracking the performance of the Indonesian stock market, concluded at 6,736.68 points, with a slight gain of 7.04 points or 0.10 percent.

Malaysia's FTSE Bursa Malaysia KLCI closed at 1,411.54 points, showing a decline of 7.46 points or 0.53 percent.

In New Zealand, the S&P/NZX 50 INDEX GROSS closed at 11,944.20 points, down 48.80 points or 0.41 percent.

South Korea's KOSPI Composite Index closed at 2,567.55 points, registering a gain of 10.47 points or 0.41 percent.

Taiwan's TSEC weighted index concluded at 16,188.03 points, showing a slight increase of 7.14 points or 0.04 percent.

India's NIFTY 50 closed at 18,348.00 points, showing an increase of 33.60 points or 0.18 percent.

In Toronto, Canada, the S&P/TSX Composite index closed at 20,146.01, down by 205.05 points or 1.01 percent.

In Brazil, the IBOVESPA index closed at 109,915.06, down by 298.05 points or 0.27 percent.

The IPC MEXICO index closed at 53,110.55, down by 355.77 points or 0.67 percent.

The S&P/CLX IPSA index in Santiago, Chile, closed at 5,058.88, with no change or 0.00 percent movement.

Israel's TA-125 index closed at 1,782.57 points, experiencing a decline of 19.48 points or 1.08 percent.

Egypt's EGX 30 Price Return Index finished at 16,787.70 points, with a modest gain of 23.30 points or 0.14 percent.

Overall, the global stock markets ended the day mainly down, reflecting the cautious sentiment prevailing among investors. The fluctuations in various indices highlight the ongoing uncertainty and volatility in the global economic landscape. Investors will closely monitor market trends and developments in the coming days.