(Reuters) - The S&P 500 ended flat on Wednesday, losing gains late in the session as investors digested comments by Federal Reserve Chair Janet Yellen, who kept options open for more rate hikes but also saw risks to the U.S. economy.
The Dow and S&P 500 posted their fourth straight day of losses while the Nasdaq ended its three-day down streak.Materials and energy shares were Wednesday's biggest losers following further losses in U.S. oil prices. The market had traded higher for much of the session after Yellen told Congress she does not expect the central bank to reverse the rate hike program it began in December. But Yellen also acknowledged tightening financial conditions and uncertainty about China."The market was strong (early in the day) because Janet Yellen confirmed the fact the Fed would go very slow on rate hikes because the economy was showing some signs of sluggishness," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia."But maybe she is saying the economy is slower than most of us were thinking."Investors have all but ruled out further interest rate hikes this year, after the Fed raised its fed funds rate for the first time in a decade in December.The Dow Jones industrial average <.dji> closed down 99.64 points, or 0.62 percent, to 15,914.74, the S&P 500 <.spx> lost 0.35 points, or 0.02 percent, to 1,851.86 and the Nasdaq Composite <.ixic> added 14.83 points, or 0.35 percent, to 4,283.59.U.S. stocks have struggled since the start of the year amid mounting worries over a slowdown in global and U.S. economic growth. The Dow and S&P 500 are down about 9 percent each so far in 2016 while the Nasdaq has lost about 14 percent."As long as we can avoid a recession, this correction will probably work itself out, and we'll have the opportunity to bounce back," said Kelly Bogdanov, portfolio analyst at RBC Wealth Management in San Francisco.Walt Disney