The stock markets in US, after finishing almost unchanged on Tuesday, rallied in the early session today after Yellen cited risks to the economy but did not back off from a gradual path of tightening. At the time of writing, the Dow Jones Industrial Average (DJIA) was up 118 points or 0.75%. The S&P 500 was trading higher by 22 points or 1.2% while the tech-heavy Nasdaq Composite edged up 80 points or 1.88%. In her statement, Yellen did not specifically rule out further rate hikes, but did downgrade her view of the economic outlook. More importantly, Yellen called equity sell-off as a risk to the US economy. Hence, equities rallied on hopes the Fed may hint that the Federal Reserve could hold off on additional rate hikes or may move to rate cuts as well if the financial market turmoil worsens. For more information, read our latest forex news.