Investing.com - U.S. stocks dropped on Tuesday on fears the Iraqi insurgency is embroiling the broader Middle East, which offset otherwise upbeat economic indicators out of the U.S.
At the close of U.S. trading, the Dow 30 fell 0.70%, the S&P 500 index rose 0.64%, while the NASDAQ Composite index fell 0.42%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was up 10.75% at 12.16.
Media reports that Syrian warplanes hit targets in western Iraq earlier Tuesday in an effort to join Iran and support the embattled Baghdad government sent stocks falling, as fears began to grow the conflict will increase in duration and complexity, especially if Washington gets more involved.
Middle Eastern concerns sent stocks falling, eclipsing otherwise bullish U.S. housing and consumer sentiment data.
New home sales rose to a six-year high, surging 18.6% in May to an annual rate of 504,000, according to the U.S. Census Bureau. May's figure was the highest level since May 2008 and the largest monthly increase since January 1992.
Analysts were expecting new home sales to rise 1.6% to 440,000 units.
Elsewhere, the Conference Board reported that its consumer confidence index jumped to 85.2 in June from 82.0 last month. It was the highest reading since January 2008.
Analysts were expecting a reading of 83.5.
Leading Dow Jones Industrial Average performers included Intel Corporation (NASDAQ:INTC), up 0.91%, Coca-Cola Company (NYSE:KO), up 0.37%, and UnitedHealth Group Incorporated (NYSE:UNH), up 0.32%.
The Dow Jones Industrial Average's worst performers included Exxon Mobil Corporation (NYSE:XOM), down 1.56%, J P Morgan Chase & Co (NYSE:JPM), down 1.33%, and Boeing Company (NYSE:BA), down 1.31%.
European indices, meanwhile, ended the day largely higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 0.16%, France's CAC 40 rose 0.06%, while Germany's DAX rose 0.17%. Meanwhile, in the U.K. the FTSE 100 fell 0.20%.
On Wednesday, the U.S. is to publish data on durable goods orders, as well as revised data on first-quarter growth.