NEW YORK (CNNMoney.com) - The Dow industrials hit a fresh 4-1/2 year high Wednesday and the broader market managed slim gains at the end of a choppy day, influenced by falling oil prices and mild comments from the new chairman of the Federal Reserve.

The Dow Jones industrial average (up 30.58 to 11,058.97, Charts) gained 0.3 percent, closing at a 4-1/2 year high.

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The broader Standard & Poor's 500 (up 4.47 to 1,280.00, Charts) index gained around 0.4 percent, while the Nasdaq composite (up 14.26 to 2,276.43, Charts) rose roughly 0.6 percent.

Long-term Treasuries rose modestly, while the dollar barely budged versus other major currencies. Oil and gold both tumbled.

In his first public testimony, new Federal Reserve chief Ben Bernanke told Congress that while the economy remains strong, so do inflationary pressures -- and that could lead to more interest-rate increases. It was essentially what market participants already knew, and served to comfort the market.

Falling oil prices also proved supportive. However, after a big run up Tuesday, stock gains were limited and the market even dipped into negative territory in the early afternoon, before recovering by the close.

"If we had reversed oil or if Bernanke was not able to stay in the middle of the road the market would have sold off," said Art Hogan, chief market analyst at Jefferies & Co. "But no news is good news."

After the close, Hewlett-Packard (Research) reported higher fiscal first-quarter earnings and revenue that rose from a year ago. The tech bellwether also issued a current-quarter earnings forecast that is higher than analysts' current estimates. (see more)

Shares rose around 3.5 percent after the close after falling 2.5 percent during the session.

Applied Materials (Research) also reported quarterly results after the close. The chip gear maker reported higher quarterly earnings -- excluding charges -- that rose from a year ago and also issued a bullish current-quarter revenue forecast. Shares gained 2.5 percent after the close.

Despite the upbeat tech news, Nasdaq and S&P futures continued to point to a flat open for stocks Thursday morning, when fair value is taken into account.

In his first public testimony since replacing Alan Greenspan two weeks ago, Ben Bernanke performed as expected.

He told Congress that the economy was strong last year despite obstacles including inflation and hurricanes, and that the outlook for 2006 was positive too.

He also talked about the risks of greater inflationary pressures this year, including higher energy prices, and noted that at the last Fed meeting in January -- the last with Greenspan -- the bankers had implied that more rate hikes may be needed. He cited that as "an assessment with which I concur."

At the January meeting, the central bank opted to boost its key short-term rate a quarter-percentage point to 4.5 percent, the 14th consecutive hike since late June 2004.

"I think he was signaling to the market that yes, there is another (quarter-point) rate hike coming in March and possibly in May, but that will be data dependent," said Stuart Hoffman, chief economist at PNC Financial Services Group. "He essentially confirmed what the market has already been pricing in, in terms of rate hikes."

In addition to prepared remarks, Bernanke answered questions posed by the lawmakers on the House Financial Services Committee.

Blue chips were mixed, with some of Tuesday's big Dow 30 gainers falling, including Alcoa (down $0.48 to $30.89, Research) and 3M (down $0.57 to $73.13, Research).

Caterpillar (up $1.38 to $71.60, Research) and Verizon Communications (up $0.63 to $34.15, Research) helped boost the Dow.

Fellow Dow component Merck (Research) gained 1.8 percent on news that regulators agreed to review its application for a new diabetes drug, putting the company about 6 months ahead of its rivals in bringing the product to market.

And financial stocks jumped, sending the Amex Securities Broker/Dealer (Charts) index up about 1.2 percent.

Oil prices fell more than three percent following the strong weekly oil inventories report. U.S. light crude for March delivery closed at $57.70 a barrel on the New York Mercantile Exchange.

That sent oil stocks lower, with the Philadelphia Oil Service (Charts) sector index losing 2.3 percent.

Market breadth was positive. On the New York Stock Exchange, winners topped losers by about five to three on volume of 1.73 billion shares. On the Nasdaq, advancers topped decliners three to two as 1.86 billion shares changed hands.

Investors also took in a bullish morning read on manufacturing. The February NY Empire State index clocked in at 20.3 versus forecasts for a drop to 18.

A separate report showed a surprise drop in industrial production.

Treasury prices inched higher, with the yield on the 10-year note falling to about 4.60 percent from 4.61 percent late Tuesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar was little changed versus the euro and yen.

COMEX gold for April delivery fell $6.20 to $542.70 an ounce.

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