US stocks slid Wednesday after Federal Reserve Chairman Ben S Bernanke said that the country's economy was continuing to expand moderately, but concerns remained about employment and housing, dpa reported.
Testifying before the US Senate Banking Committee in his semi- annual assessment of the economic situation, Bernanke noted a "slow recovery" in the job market that was in turn impacting on a "weak" housing market.
With the economy still sluggish, the central bank had to remain "prepared" to step in as needed to help boost growth, Bernanke said. But he offered few insights on additional steps the Fed might take, beyond keeping interest rates at a record low of near 0 per cent.
Stocks fell after Bernanke's afternoon testimony began after a morning rally prompted by upbeat earnings at banks Morgan Stanley and Wells Fargo.
The blue-chip Dow Jones Industrial Average fell 109.43 points, or 1.07 per cent, to 10,120.53. The broader Standard and Poor's 500 Index shed 13.89 points, or 1.28 per cent, to 1,069.59. The technology-heavy Nasdaq Composite Index lost 35.16 points, or 1.58 per cent, to 2,187.33.
The US currency climbed to 78.34 euro cents from 77.61 euro cents on Tuesday and declined against the Japanese currency to 86.93 yen from 87.5 yen the previous day.