Her language will be carefully scrutinized, especially after an increasing number Fed policymakers have pushed the case for raising rates by pointing at improving employment and inflation rates.
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Phone companies and utilities, which would suffer if interest rates rose and investors looked elsewhere for income, fell more than the rest of the market.
In Asian markets, Japan’s Nikkei Stock Average fell 1.18 percent, Hong Kong’s Hang Seng Index rose 0.41 percent, China’s Shanghai Composite Index gained 0.06 percent and India’s BSE Sensex fell 0.19 percent.
The Dow slid 53.01 (-0.29 percent) to finish at 18,395.40. Futures for the Nasdaq 100 index declined 2.75 points to 4,779.50.
US stocks ended modestly lower after a volatile session on Friday, having bounced between gains and losses as investors wrestled with the likely timing of a USA interest rate hike following comments from top Federal Reserve officials.
The yield on the 10-year note fell to 1.54 percent from 1.56 earlier Friday.
The TSX rose 64 points at midday, led higher by energy and mining stocks, as commodity prices climbed despite a stronger dollar.
Shares of Herbalife fell 6 percent to $58.25 in premarket trading after a report said Carl Icahn, the nutritional supplement maker’s top shareholder, was looking to sell his stake.
Industrials rose 1.2 percent, including gains for railroad stocks, while financials firmed 0.4 percent.
European markets were mostly lower today, with the Spanish Ibex Index dropping 0.06 percent, STOXX Europe 600 Index falling 0.08 percent and German DAX 30 index dropping 0.24 percent.
Lisa Kopp, senior vice president at U.S. Bank Wealth Management, said she wasn’t surprised by the selling given the “jitteriness” in the markets.
Autodesk rose 3.5 percent after reporting better-than-expected quarterly sales. Raw material suppliers, which have taken heavy losses this week, turned higher.
“We think most officials will want to see more concrete evidence of a rebound in GDP growth and a rise in inflation towards the 2 percent target, with a December move still appearing the most likely outcome”, said Andrew Hunter, an economist with Capital Economics.
The Standard & Poor’s 500 index added 5 points, or 0.3 percent, to 2,178.
BOND REACTION: U.S. government bond prices rose slightly following Yellen’s speech, suggesting investors aren’t anxious about rates increasing soon.
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Toronto-Dominion Bank has made changes to its mortgage underwriting practices in recent years, its chief risk officer said on Thursday, potentially making it more resilient if house prices fall in Vancouver and Toronto.
