US STOCKS-Wall St up in volatile trade following Yellen comments
* Indexes set for second weekly loss in a row
* Wall St seesaws after Yellen remarks
* Indexes up: Dow 0.5 pct, S&P 0.3 pct, Nasdaq 0.2 pct (Updates to late afternoon)
By Caroline Valetkevitch
Oct 14 (Reuters) - U.S. stocks held modest gains in volatile Friday afternoon trading as investors assessed comments by Federal Reserve Chair Janet Yellen on the U.S. economy.
Yellen, in a speech at a conference of policymakers and top academics, laid out the deepening concern at the Fed that U.S. economic potential is slipping - and may need aggressive steps to rebuild it.
Traders have currently priced in a 67-percent chance of a rate hike in December, while the odds for November are minimal as the Fed's meeting falls just days before the Nov. 8 U.S. presidential election.
"Is Chair Yellen now adding yet another reason for holding off raising rates in December? We'll have to watch the data as (we) move towards the mid-December FOMC meeting and more carefully monitor ... Yellen's guidance," said Quincy Krosby, market strategist at Prudential Financial.
Gains in bank shares helped to support the market, with the S&P 500 financial index up 0.8 percent, though shares of JPMorgan, Citigroup and Wells Fargo were mostly flat following their results. Continuación...