Fed warns on social media stocks

The US Federal Reserve warns of "stretched valuations" in social media and biotechnology firms as part of chair Janet Yellen's semi-annual report in front of Congress.

[color=rgb(51, 51, 51)]In [/color][color=rgb(74, 113, 148)] a separate monetary policy report [/color][color=rgb(51, 51, 51)] released as part of the Fed's semi-annual testimony in front of Congress, the Fed wrote: "Valuation metrics in some sectors do appear substantially stretched - particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year." [/color]
[color=rgb(51, 51, 51)][/size]That sent all three major US indexes into the red after they had been trading slightly higher during the morning. [/color]