Stocks fell sharply in volatile trading and closed on session lows, despite a batch of positive economic reports, as investors redirected their attention to the debt crisis in the euro zone. Spain is likely to request a bailout from the ECB and is set to announce another round of strict austerity measures in a 2013 budget on Thursday, already prompting protests in Madrid.
According to the S&P/Case Shiller composite index, home prices rose 0.4% (0.8% expected) in July, a sixth consecutive monthly increase, suggesting that the recovery in the housing market remains on track. In a separate report, The U.S. Federal Housing Finance Agency home price index indicated prices rose 0.2% in July compared to 0.6% in June.
Consumer confidence jumped to seven-month highs, rising to 70.3 in September, compared to a reading of 63.1 forecasted by economists.
Have a good Tuesday evening.