US stocks rose on Wednesday, a day after Federal Reserve Chair Janet Yellen's comments eased some concerns about the path of interest rate hikes, but gains were limited by a dip in crude oil prices. Oil prices retreated from their day's highs after a report showed a weekly build in US crude inventories.
Yellen, in her first remarks since the Fed held steady on rates earlier this month, said the central bank should tread cautiously on raising rates this year. Markets around the world cheered Yellen's remarks, which suggested that a rate hike was not immediately on the horizon. The dollar fell more than a percent, while bond prices rallied.
The rally was driven by Yellen's comments but the upcoming corporate earnings season would be the real test for stocks, said Ernie Cecilia, chief investment officer of Bryn Mawr Trust in Devon, Pennsylvania. "In order to sustain the strength in the equity market, you're going to have to see some decent earnings growth at some point," Cecilia said.
At 12:34 pm ET (1634 GMT), the Dow Jones industrial average was up 84.99 points, or 0.48 percent, at 17,718.1, the S&P 500 was up 9.87 points, or 0.48 percent, at 2,064.88 and the Nasdaq Composite index was up 22.35 points, or 0.46 percent, at 4,868.98. All 10 major S&P sectors were higher, led by a 0.87 percent rise in the financial sector. Metlife gave the sector its biggest boost.