Fed comments weaken stocks - New York Report

US STOCKS ended weaker yesterday after US Federal Reserve Chair Janet Yellen warned of high valuations, adding to anxiety about future interest rates and a global bond rout.

The S&P 500 ended at a low not seen since early April after Yellen said high equity valuations could pose dangers, although she also said she does not see any bubbles forming.

Atlanta Federal Reserve bank president Dennis Lockhart said he still expects it will be appropriate to raise interest rates some time in the middle of the year, and that market expectations of a September increase were in “reasonable alignment” with the central bank’s likely path.

The Dow Jones industrial average fell 86.22 points, or 0.48 per cent, to 17,841.98, the S&P 500 lost 9.31 points, or 0.45 per cent, to 2,080.15 and the Nasdaq Composite dropped 19.68 points, or 0.4 per cent, to 4,919.64.