New York Report: Dow up but Nasdaq falters

US STOCKS closed broadly lower yesterday after the Federal Reserve, in an unusual statement, singled out the valuation of social media and biotech shares as “substantially stretched”.

The Dow Jones Industrial Average rose 5.62 points, or 0.03 per cent, to 17,060.68, the S&P 500 lost 3.82 points, or 0.19 per cent, to 1,973.28, while the Nasdaq Composite fell 24.03 points, or 0.54 per cent, to 4,416. 39.

Both JP Morgan and Goldman Sachs rose after a set of good results, with the former rising 3.5 per cent to $58.27 – the day’s biggest gainer.

However, Johnson & Johnson fell two per cent to $103.28 after its results.

Social media and biotech shares slumped following the Fed’s statement, with the Nasdaq Biotech index down 2.3 per cent.