US stocks dropped on Wednesday as concern grew about troubles in the subprime mortgage market a day after Bear Stearns said two hedge funds with big bets on the sector were nearly worthless. Lackluster results from technology bellwethers also weighed on stocks. Shares of both Intel Corp and Yahoo Inc fell 5 percent after their quarterly scorecards disappointed investors.
Adding to investors' frayed nerves, Federal Reserve Chairman Ben Bernanke told Congress housing market woes could dampen an expected pickup in US economic growth.
The Dow Jones industrial average was down 107.87 points, or 0.77 percent, at 13,863.68. The Standard & Poor's 500 Index was down 9.89 points, or 0.64 percent, at 1,539.48. The Nasdaq Composite Index was down 26.25 points, or 0.97 percent, at 2,686.04.