NEW YORK (TheStreet) -- The markets hung on Fed Chair Janet Yellen's every word Wednesday. But they couldn't interpret what she said.
The S&P 500 (SPY) and Dow (DIA) wavered between losses and gains of more than half-a-percent as Yellen testified before a Senate committee. The Nasdaq (QQQ) opened in the red and the losses deepened over the course of the morning.
All the indices are still near all-time-highs.
Yellen didn't waver from her dovish stance on interest rates. She underscored the weakness in the U.S. labor market and said "a highly accommodative policy will remain appropriate for some time after asset purchases end."
Those comments supported economists' view that the Fed's taper of bond purchases will continue until the government is out of the quantitative easing business, but benchmark interest rates will remain at historic lows through the first half of 2015.
Yellen's dovish comments have lifted the market in the past. And many investors anticipated that stocks would rise after her speech ended at noon.
Yellen bounce....lets see how many printers she is going to turn on.? Maximus (@MaximusAnalysis) May. 7 at 11:56 AM
However, Yellen gave investors some reason for concern. She hinted that investors may be relying too much on riskier assets for returns given low bond interest rates. "Some reach-for-yield behavior might be evident," she said.
Investors on StockTwits said those comments were as close as any Fed chair has ever come to calling a bubble. And they warned long buyers to read between the lines.