U.S. stocks dropped Wednesday, with the Dow Jones Industrial Average falling more than 100 points, after new data showed the U.S. private sector created fewer jobs last month — the fewest since January 2014. The economic measure is widely used as a pre-indicator to gauge the relative health of the U.S. labor market ahead of Friday’s highly anticipated monthly employment report.
Meanwhile, Federal Reserve Chairwoman Janet Yellen warned in Washington on Wednesday that stock market valuations are “quite high” and could be a potential source of financial instability.
In morning trading, the Dow (INDEXDJX:.DJI) dropped 109.10 points, or 0.61 percent, to 17,820.03. The Standard & Poor’s 500 (INDEXNASDAQ:.IXIC) dipped 7.71 points, or 0.37 percent, to 2,081.75. The Nasdaq composite (INDEXSP:.INX) fell 22.48 points, or 0.46 percent, to 4,916.85.
Yellen warned current equity valuations are high, which could pose “potential dangers,” but added that risks to financial market stability are moderate.