NEW YORK: US stocks dropped on Tuesday despite solid economic data in a decline analysts attributed to profit taking and ongoing violence in Iraq.
At the closing bell, the Dow Jones Industrial Average tumbled 117.53 points (0.69 percent) to 16,819.73, while the broad-based S&P 500 fell 12.52 (0.64 percent) to 1,950.09.
Both indices have notched records in the last week. The tech-rich Nasdaq Composite Index lost 18.32 (0.42 percent) at 4,350.36.
US equities rose early Tuesday after reports showed new home sales in May reached their fastest pace in six years and that US consumer confidence in June jumped to its highest level since January 2008.
But Michael James, managing director of equity trading at Wedbush Securities, attributed an afternoon swoon in equity markets to ongoing newsflow out of Iraq.
"People are using (Iraq) as an excuse to take some profits given how extended the market's been," James said. "Selling has kind of brought out more selling."
On Tuesday, Iraqi air strikes killed at least 38 people as security forces held off attacks on a strategic town and an oil refinery, officials said.
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