Markets rise but dovish Yellen could still prick asset bubble

Markets mostly rose on Wednesday.

The S&P 500 rose 0.7 percent and the STOXX Europe 600 jumped 1.5 percent. However, the Nikkei 225 fell 0.5 percent.

Markets were somewhat buoyed by Federal Reserve Chair Janet Yellen's testimony to the US Congress.

Karyn Cavanaugh, senior market strategist at Voya Financial, noted of her testimony: “She’s back to looking at inflation a little bit more. The market was a little worried but she’s back to the same dovish Yellen.”

Still, Thomas Kee Jr wrote at MarketWatch that with the US stock market already “66% higher than it should be”, Fed monetary tightening could “prick the asset bubble that the market is in today”.