NEW YORK, Sept. 5 -- U.S. stocks ended mixed on Tuesday, trimming a big chunk of early losses, as investors were expecting more central bank moves amid new signs of economic slowdown.

When the market closed, the Dow Jones Industrial Average lost 54.90 points, or 0.42 percent, to 13,035.94. The Standard & Poor's 500-stock Index slipped 1.64 point, or 0.12 percent, to 1,404.94. The Nasdaq Composite Index added 8.10 point, or 0.26 percent, to 3, 075.06.

The Dow Jones Industrial Average tumbled more than 100 points in early trading after the latest bunch of economic data showed the economy was continuing losing momentum.

According to the Institute for Supply Management, the manufacturing index fell to 49.6 in August from 49.8 in July and 49.7 in June. The reading was slightly lower than the 50.0 consensus, while the details were even weaker than headline number, with the leading new orders component down to 47.1 from 48.0.

"In short, the data continue to show a significant loss of momentum in manufacturing in recent months, although the overall index is still well above the low-40s levels typically associated with recession,"said Jim O'Sullivan, chief U.S. economist of High Frequency Economics.

"Manufacturing directly accounts for about 12 percent of GDP and is much more cyclical than the rest of the economy. The non- manufacturing ISM index for August will be released on Thursday; we expect that index will remain above 50, rising a little from the 52.6 reading in July," he added.

Meanwhile, a separate report from the Commerce Department showed the construction spending dipped 0.9 percent in July, falling the most in a year, while analysts were expecting for a moderate rise.

However, major index staged a comeback in late trading as investors were still expecting central banks to move to help the ailing economy.

Focus remained on Europe as European Central Bank President Mario Draghi is expected to give more details about the new round of bond purchasing plans on Thursday, aiming at lowering borrowing costs in its debt-ridden members like Spain and Italy.

The U.S. Federal Reserve was also a major concern among investors. In his highly-anticipated speech delivered in Jackson Hole, Wyoming, Friday, Fed Chairman Ben Bernanke defended the central bank's past monetary policies and reiterated the central bank was ready to act if necessary.

Many analysts thought Bernanke's speech was consistent with more easing, or kind of "QE3-friendly."

In other markets, the U.S. dollar rose against most major currencies in late New York trading as weak U.S. manufacturing data raised risk-aversion appetite, while oil dropped on concerns over weaker demand.

Light, sweet crude for October delivery dropped 1.17 dollars, or 1.23 percent, to settle at 95.30 dollars a barrel on the New York Mercantile Exchange.