U.S. Stocks Fall amid Concerns over Surging Oil Prices

U.S. stocks closed lower on Tuesday as investors were concerned that rising oil prices would hurt the U.S. economic recovery.

Although U.S. Federal Reserve Chairman Ben Bernanke said rising oil prices were not unlikely to derail the economy, his words did little to allay investors' worries about surging oil prices.

Investors also shrugged off an upbeat manufacturing report, which showed that manufacturing activity in the United States climbed in February to the highest level in nearly seven years.

According to the Institute for Supply Management, the index rose to 61.4, the 19th consecutive month of expansion for the manufacturing sector.

The Dow Jones industrial average dropped 168.32 points, or 1.38 percent, to 12,058.02. The Standard & Poor's 500 Index was down 20. 89 points, or 1.57 percent, to 1,306.33. The Nasdaq lost 44.86 points, or 1.61 percent, to 2,737.41.