U.S. stocks fall ahead of Yellen speech

U.S. stocks traded lower on Thursday as investors awaited a speech on inflation dynamics and monetary policy from U.S. Federal Reserve Chair Janet Yellen.

At midday, the Dow Jones Industrial Average lost 231.76 points, or 1.42 percent, to 16,048.13. The S&P 500 shed 25.07 points, or 1.29 percent, to 1,913.69. The Nasdaq Composite Index was down 75.28 points, or 1.58 percent, to 4,677.46.

Traders are focusing on her comments on inflation later Thursday after the closing bell, one week after the Fed decided to hold its benchmark rate unchanged.

Some analysts believed uncertainty about the timing of interesting rate hikes by the central bank had led to increased volatility.

On the economic front, in the week ending Sept. 19, the advance figure for seasonally adjusted initial claims was 267,000, an increase of 3,000 from the previous week's unrevised level, according to the U.S. Labor Department Thursday.

The U.S. Commerce Department announced that new orders for manufactured durable goods in August declined 4.8 billion dollars or 2 percent to 236.3 billion dollars.

In corporate news, shares of Caterpillar fell over 7 percent in the morning session on Thursday, after the company said it will cut up to 5,000 jobs and lowered guidance.

U.S. stocks ended mildly lower after fluctuating between gains and losses Wednesday, as investors assessed European Central Bank (ECB) President Mario Draghi's remarks about monetary stimulus policy. Endit