NEW YORK (AFP) - Wall Street stocks dropped on Wednesday after Federal Reserve chairman Janet Yellen said the US central bank could lift interest rates in December.

At the closing bell, the Dow Jones Industrial Average stood at 17,871.05, down 47.10 points (0.26 per cent).

The broad-based S&P 500 fell 7.24 (0.34 per cent) to 2,102.55, while the tech-rich Nasdaq Composite Index lost 2.55 (0.05 per cent) at 5,142.58.

Yellen, speaking in a congressional hearing, said a December rate hike was "live possibility" if data continues to show solid economic growth.

The remarks came two days before the US Labour Department releases a much-anticipated jobs report for October.