Dow drops 500 points | Powell's grim assessment | Tepper says stocks are overvalued

Stocks fell after Fed Chairman Jerome Powell warned the economy may need more help.

VIEW IN BROWSER | SUBSCRIBE WED, MAY 13, 2020 EVENING BRIEF AS OF WED, MAY 13, 2020 • 04:31 ET DJIA 23247.97 -2.17% -516.81 S&P 500 2820.00 -1.75% -50.12 NASDAQ 8863.17 -1.55% -139.38   Most Active DOW NAME LAST CHG %CHG AAPL 307.65 -3.76 -1.21% MSFT 179.75 -2.76 -1.51% JPM 84.03 -3.00 -3.45% S&P 500 NAME LAST CHG %CHG GE 5.79 -0.21 -3.50% BAC 20.87 -1.00 -4.57% F 4.72 -0.26 -5.22% NASDAQ NAME LAST CHG %CHG AMD 52.18 -1.58 -2.94% AAL 9.11 -0.54 -5.60% UAL 20.71 -2.05 -9.01% EDITOR'S NOTE Equities have soared since hitting their March 23 lows and so have price-earnings ratios - a measure of how much an investor pays for a stock relative to a company's profits.   The stock market now has the richest valuation in 18 years, even as earnings decline during the coronavirus pandemic, CNBC's Jeff Cox writes. Perhaps companies will report higher profit margins after slashing millions of employees, or maybe the recovery will be quick, but it's a risky bet.   It's "maybe the second-most overvalued stock market I've ever seen," billionaire hedge fund investor David Tepper said Wednesday on CNBC's "Halftime Report." "I would say '99 was more overvalued." Tepper's comments followed Federal Reserve Chairman Jerome Powell's grim assessment of the economy.   On Tuesday evening, another well-regarded billionaire investor, Stanley Druckenmiller, told the Economic Club of New York, "The risk-reward for equity is maybe as bad as I've seen it in my career."   Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. Al Lewis | CNBC Markets Editor @tellittoal TOP NEWS  Dow falls for a third-straight day, losing 500 points after Powell's warning Powell says more policy help may be needed to pull the US out of economic downturn David Tepper says this is the second-most overvalued stock market he's ever seen, behind only '99 Powell says the Federal Reserve is not considering negative interest rates Hundreds of public companies hold on to small business loans as deadline to return money nears Trump warns that 'rich guys' could be talking down stock market to profit Track the latest coronavirus news here Watch David Tepper's full market-moving interview on valuation, how he's positioned and the NFL Scientists race to find a cure or vaccine for the coronavirus. Here are the top drugs in development Amazon launches a new $90 tablet as people are stuck at home     TOP VIDEO Stocks don't seem dramatically overvalued: Bill Miller   CNBC PRO Bill Miller on airlines: If you don't own them, 'you're making a bet against the vaccine'   SPECIAL REPORTS Home Depot could be headed back to records, and trader has a way to play it 'We want to be overweight consumer discretionary,' investor says — these are her top stock picks   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2020 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS