Most US stocks lower on concerns of US inflation
By DPA, IANSWednesday, February 9, 2011
NEW YORK - Two out of three major US stock indices fell Wednesday as Federal Reserve Chairman Ben Bernanke was forced to assuage concerns that higher inflation around the world could reach US shores.
Bernanke in testimony before the US Congress said there were no signs that inflation was getting too high in the US, even as emerging economies like China and Brazil are combatting price concerns from food, oil, and generally higher levels of growth.
The US central bank head also said he expected the labour market would remain weak for “several years”, despite “some ground for optimism” from figures that showed the unemployment rate dropping from 9.8 percent in November to 9 percent in January.
The blue-chip Dow Jones Industrial Average inched up 6.74 points, or 0.06 percent, to 12,239.89. But the broader Standard and Poor’s 500 Index fell 3.69 points, or 0.28 percent, to 1,320.88. The technology-heavy Nasdaq Composite Index dropped 7.98 points, or 0.29 percent, to 2,789.07.
The US currency dropped against the euro at 72.84 euro cents from 73.41 euro cents Tuesday. The dollar was virtually unchanged against the Japanese currency at 82.37 yen, compared to 82.36 yen the previous day.
