U.S. stocks rebound after Yellen's comments

U.S. stocks pared part of early gains to trade mildly higher around midday Friday, after U.S. Federal Reserve Chair Janet Yellen reiterated the strength of the country's economy.

By noon, the Dow Jones Industrial Average rose 57.26 points, or 0.33 percent, to 17,599.22. The S&P 500 gained 8.24 points, or 0.40 percent, to 2,050.15. The Nasdaq Composite Index edged up 3.65 points, or 0.08 percent, to 4,852.02.

In a panel discussion with three former Fed chairs late Thursday, Yellen said she "certainly wouldn't describe this as a bubble economy," citing a healing labor market and a five-percent unemployment rate that grabbed the headlines.

The global economy has seen relatively weak growth despite positive signs in the United States, she added.

Meanwhile, New York Fed President William Dudley said early Friday that a cautious and gradual approach to rate hikes is appropriate, citing that risks to the U.S. economy remain tilted to the downside.

Investors were also encouraged by a strong rebound in oil prices, which surged some 6 percent around midday Friday on fresh hopes for a proposed freeze in oil production.

There is no major economic report due out Friday. Endit