U.S. stocks rebound amid Yellen's downbeat comments

U.S. stocks rebounded Wednesday as Federal Reserve Chair Janet Yellen signaled that the risks to economy could delay the rate hikes.

"Financial conditions in the United States have recently become less supportive of growth, with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar," Yellen said in her testimony before a joint hearing of Senate and House committees.

U.S. central bank decided to raise the benchmark interest rate by 25 basis points last December, the first interest rate increase since 2006, marking the end of an era of extraordinary easing monetary policy in the country.

The Fed's next policy meeting is scheduled on March 15-16. Traders expect the Fed will leave the rate unchanged on the meeting in face of the weak economic data.

Shortly after the opening bell on Wednesday, the Dow Jones Industrial Average moved up 102 points, or 0.64 percent, to 16,116. The S&P 500 gained 19 points, or 1.03 percent, to 1,871. The Nasdaq Composite Index rose 72 points, or 1.68 percent, to 4,340.

U.S. stocks ended mildly lower after choppy trading Tuesday, as a broad-based sell-off in global stock markets weighed on the Wall Street. Endit