Dow slides about 110, its first drop in a week as post-Brexit rally stalls

The post-Brexit stock rally paused Tuesday as investors continue to wrestle with the fallout of Britain leaving the European Union and move cash into haven investments like government bonds, where yields hit fresh record lows.

After rallying more than 800 points in last week's final four trading days, the Dow Jones industrial average fell Tuesday, with blue chip shares tumbling 108 points, or 0.6%. The broader Standard & Poor's 500 stock index, which is coming off its best week of the year, was 0.7% lower. The technology-packed Nasdaq composite ended down 0.8%.

Wall Street continues to grapple with the fallout of the 'Brexit' vote, which continues to inject uncertainty into markets around the globe.

"After a long holiday weekend here in the U.S., Brexit is still front and center in geopolitical and financial news," Paul Hickey of Bespoke Investment Group told clients in a report. "While markets were able to rally in stunning fashion last week, they trade with a hangover to start off the week. Risk assets are all trading in the red."

Earlier Tuesday, the Bank of England took its first steps since Britain voted to leave the EU to improve financial conditions in the United Kingdom. The BOE reduced the capital requirements of banks in an effort to keep credit flowing in the U.K.

In a sign of ongoing investor skittishness, government bond yields around the globe continued to fall. In the U.S. the 10-year Treasury note hit a fresh record intra-day low of 1.378% early Tuesday before stabilizing at 1.394%, putting it on track to close at an allt-ime closing low, eclipsing its 1.40% record set back in July 2012. Government yields also headed lower in Germany and the U.K.

The British pound remained under pressure, hitting a fresh 31-year low vs. the U.S. dollar. The pound was trading down 1.35% Tuesday.

Pound falls sharply on renewed Brexit fears

Stocks were also trading lower across Europe. The broad Stoxx Europe 600 stock index was down 1.7%.

In another sign of risk-off mentality in markets, U.S.-produced crude was down 3% to $47.52 per barrel. And gold, a perceived haven in uncertain times, was up $11.40 an ounce to $1,350.40.