The US markets ended in red on Tuesday amid concerns about extended coronavirus lockdowns in Europe amid worries a new wave of infections. German leaders agreed to extend the country’s lockdown until April 18, raising concerns about demand from Europe’s largest economy. The news contributed to a steep drop by the price of crude oil. Meanwhile, Traders also kept an eye on Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen’s virtual testimony before the House Financial Services Committee. In prepared remarks, Powell reiterated the Fed's recent assessment that indicators of economic activity and employment have turned up recently. Powell noted that the economic recovery is far from complete, however, and stressed the Fed will continue to provide the support that the economy needs for as long as it takes.
On the economic data front, a report released by the Commerce Department showed a nosedive by US new home sales in the month of February. The Commerce Department said new home sales plummeted by 18.2 percent to an annual rate of 775,000 in February after jumping by 3.2 percent to an upwardly revised rate of 948,000 in January. Street had expected new home sales to tumble by 5.2 percent to a rate of 875,000 from the 923,000 originally reported for the previous month. With the much bigger than expected decrease, new home sales plunged to their lowest rate since hitting 698,000 last May.
Dow Jones Industrial Average fell 308.05 points or 0.94 percent to 32,423.15, Nasdaq dropped 149.85 points or 1.12 percent to 13,227.7 and S&P 500 was down by 30.07 points or 0.76 percent to 3,910.52.