The US Federal Reserve chair, Janet Yellen, has referred to stretched valuations for smaller stocks in social media and biotechnology sectors. Yellen also noted that the economy still needs support: "Although the economy continues to improve, the recovery is not yet complete." Yellen continued to highlight the considerable slack in the job market.
Scoreboard: Yellen caution
Janet Yellen's warning on stretched valuations in the social media and biotech sectors weighed on the tech-heavy Nasdaq, while the gold price slipped on a firmer US dollar.
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