NEW YORK (TheStreet) -- Stocks extended losses by late morning Tuesday, falling as the dollar surged and oil dropped following a rush of solid data that showed the economy on better footing after a weak first quarter.
The S&P 500 was down 1%, the Dow Jones Industrial Average fell almost 200 points or 1.1%, and the Nasdaq dropped 1.2%.
The U.S. dollar gained against a basket of international currencies on better-than-expected data on home prices and consumer confidence. The greenback has surged this year since it's viewed as a safe-haven asset as the Federal Reserve looks to tighten policy while the European Central Bank introduces stimulus.
"We are back to the heady days where bad news is positive for equities. Assuming we ever left those days," said London Capital Group's Brenda Kelly in a note.
A stronger U.S. dollar hit commodities which were viewed as more expensive to international markets. West Texas Intermediate crude fell 2.1% to $58.45 a barrel.
New-home sales bounced back in April, climbing 6.8% to an annual rate of 517,000 after a poor performance in March due to winter weather. Economists had expected sales of 490,000.
U.S. house prices rose 0.9% in March, according to the Case-Shiller Home Price Index, pulling the year-on-year increase up to 5%. Nineteen of 20 cities measured showed gains, led by a 3% increase in San Francisco. The increase was as economists had expected.
Durable goods orders dropped 0.5% in April after jumping 4.4% in March. The reading was in line with economists' forecasts. Excluding transportation, durable goods rose 0.5% after a 0.4% increase in March, better than an expected 0.3% increase.