Stocks fall after investors move back into equities

Stocks fell on Tuesday.

The S&P 500 fell 0.6 percent while the STOXX Europe 600 fell 0.8 percent. The MSCI Emerging Markets Index fell less than 0.1 percent.

US Treasuries also fell, with the yield on the 10-year note rising two basis points to 1.57 percent.

US stocks remain near record highs though even as regulatory filings showed that big-name hedge fund investors like George Soros, Jeffrey Gundlach, Carl Icahn and David Tepper slashed their long equity positions in the second quarter.

However, investors have become more bullish recently. According to a Bank of America Merrill Lynch Fund Manager Survey released on Tuesday, cash positions for August fell to 5.4 percent of portfolios, down 0.4 percentage point from July, as fund managers adjusted to an overweight position on US stocks.