Dow Jones:12,437.12 (–54.49) Nasdaq: 2,762.67 (–34.25) SP 500: 1,308.87 (–8.85) US STOCKS fell yesterday, driving the Standard and Poor's 500 Index to the lowest level of the month, as Federal Reserve Chairman Ben S Bernanke said he is not prepared to take immediate action to stimulate the economy.

Raw-material producers, technology and industrial companies were the biggest drags on the market among the 10 main industries in the Standard and Poor’s 500 Index, which erased a gain of as much as 0.7 per cent.

The Dow Jones industrial average slid 54.49 points, or 0.44 per cent, to 12,437.12.

The Standard & Poor’s 500 Index shed 8.85 points, or 0.67 per cent, to 1,308.87.

The Nasdaq Composite Index dropped 34.25 points, or 1.22 per cent, to 2,762.67.

“The market is going to be volatile until we get the situation in Washington resolved,” said Don Wordell, a fund manager for Atlanta-based RidgeWorth Capital Management.

Mr Bernanke said yesterday that inflation now is “higher” and “closer” to the central bank’s informal target than was the case in August and that’s one reason why the Fed won’t immediately embark on a third round of bond-buying.

“We’re not prepared at this point to take further action,” he told the Senate banking committee.

JPMorgan, the second-largest US bank, advanced 1.8 per cent to $40.35 after the New York-based bank reported its highest half-year profit ever, at almost $11 billion.

MBIA jumped 9.2 per cent to $10.02.

ConocoPhillips rose 1.6 per cent to $75.61. The Houston, Texas-based oil company said it will separate its refining and marketing and exploration and production businesses.

Yum climbed 1.4 per cent to $56.37 as the owner of the KFC and Pizza Hut restaurant chains boosted its earnings forecast for the year on increasing customer traffic at restaurants in China.

Hartford Financial Services declined 2.8 per cent to $24.88.

Marriott International dipped 6.6 per cent to $34.69 after forecasting earnings that fell short of estimates. The largest publicly traded US hotel chain said third-quarter earnings will not be higher than 29 cents a share, missing the 30 cent average analyst projection. – (Bloomberg/Reuters)