Major US stock indexes fell by more than 1% on Tuesday, as the yield on US bonds rose after new Fed chairman Jerome Powell said the economy is growing and inflation is on the rise.

Powell, in a prepared appeal to Congress, said that the rate hike should continue despite an additional stimulus from tax cuts and government spending. Powell spoke positively about the US economy, pointing out that it is growing at a significant pace.

In addition, demand for durable goods fell in January, with the carefully monitored indicator of investment in US business falling for the second consecutive month, offering one of the first signs of how business owners will respond to the additional cash and incentives offered tax reform of the Trump administration. General orders for durable goods, industrial goods with a life expectancy of at least three years, decreased by 3.7% in January, compared with the previous month, according to seasonal fluctuations, the Ministry of Commerce said. Economists had expected a 2% decline.

However, the national housing price index from S & P / Case-Shiller increased seasonally by 0.7% during the three-month period ending December and rose 6.4% compared to the previous year. The index for 20 cities increased seasonally by 0.6% for the month and 6.3% for the year.

It is also worth noting that the index of consumer confidence from the Conference Board grew in February, after a slight increase in January. The index is now 130.8 compared to 124.3 in January. The index of the current situation increased from 154.7 to 162.4, and the index of expectations improved from 104.0 to 109.7.

Almost all components of the DOW index finished trading in the red (28 of 30). Outsider were shares of The Walt Disney Company (DIS, -4.47%). The leader of growth was shares of Intel Corporation (INTC, + 1.69%).

All S & P sectors recorded a decline. Most of all, the service sector fell (-1.9%).

At closing:

Dow -1.16% 25,410.03 -299.24

Nasdaq -1.23% 7,330.35 -91.11

S & P -1.27% 2,744.28 -35.32