NEW YORK, Mar. 3 (Xinhua) -- U.S. stocks ended negative with S&P 500 falling below 700 points for the first time in more than 12 years Tuesday after Federal Reserve Chairman Ben Bernanke said the economic recovery depends on the government's efforts to prop up financial market.

    Stocks initially opened higher Tuesday as many investors entered market to buy cheap stocks. Shares tumbled to a 12-year low on Monday with the Dow Jones average dropping below 6,800, the lowest close since April 1997.

    In a hearing at the Senate Budget Committee, Bernanke said the effectiveness of a series of moves by the Fed, the Treasury Department and other government agencies to stable markets "will be critical determinants of the timing and strength of the recovery."

    The Fed announced Tuesday that it would begin lending up to 200billion U.S. dollars initially to spur consumer and small business borrowing for autos, education, credit cards and other expenses. The so-called TALF plan was first announced late last year.

    Pending home sales plunged in January to new record low. The U.S. National Association of Realtors reported that pending home sales fell 7.7 percent from 87.1 in December to 80.4 in January, the lowest in history.

    In corporate earnings, auto parts retailer Auto Zone Inc.'s quarterly profit beat analysts' expectations, while bond insurer MBIA Inc. and media company E.W. Scripps Co. posted losses.

    The Dow Jones average fell 37.27, or 0.6 percent, to 6,726.02. The Standard & Poor's 500 index slid 4.49, or 0.6 percent, to 696.33. The Nasdaq composite index fell 1.84, or 0.1 percent, to 1,321.01.