The American stocks closed in red. The indexes fell sharply, as the statistical data and comments of the head of the Federal Reserve System (Fed) increased the likelihood of raising the base interest rate until the end of this year, reports Bloomberg.
New home sales in April jumped 6.8% compared to the previous month - to 517 thousand homes in annual terms. Analysts on average expected an increase in sales of 5.6% for the last month.
Also, the consumer confidence index in the US, calculated by Conference Board, rose unexpectedly in May to 95.4 points, while there was expected a decline to 95 points.
Last Friday, Fed Chairman - Janet Yellen, reiterated plans to raise the base rate of the Fed before the end of the current year, if economic indicators justify forecasts of the central bank.
Index Dow Jones Industrial Average on May 26 fell 190.48 points or 1.04%and amounted to 18041.54 points.
Standard & Poor's 500 dropped with 21.86 points, 1.03%, getting to 2104.20 points.
Nasdaq Composite lost 56.61 points or 1.11%, and amounted to 5032.75 points.
Quotes securities of large companies of the IT sector as Apple, Hewlett-Packard and Juniper, have fallen in price Tuesday, more than 2.2%.
Shares of the operator of broadband and cable television - Charter Communications (NASDAQ: CHTR) decreased by 0.2%. The company announced the acquisition of a competitor - Time Warner Cable, the amount of the transaction being $ 78.7 billion, including debt. Capitalization of TWC rose 7.3%. The company, which is formed as a result of the merger, will become the second largest player in the market of cable television in the United States with 23 million subscribers. For this indicator, it has conceded only Comcast Corp (NASDAQ: CMCSA), which serves over 27 million Americans.
Capitalization of the producer of solar panels - First Solar, fell 7.3% after RBC Capital Markets downgraded its recommendation on the shares to "sell."
Amid the background of strengthening the dollar, commodities and shares of mining companies fell. Steel Corporation Allegheny Technologies and the copper producer Freeport-McMoRan lost more than 3.6% of market value. Shares of oil companies Chevron and ConocoPhillips (NYSE: COP) have fallen in price by more than 1.5%.
The value of shares of financial companies also fell on Tuesday. Shares of Genworth Financial and Lincoln National Corp (NYSE: LNC) fell more than 2.4%.