By Ellis Mnyandu
NEW YORK (Reuters) - The Dow and S&P 500 were little changed on Wednesday as uncertainty about when Congress might act on a proposed $700 billion bailout for the financial sector overshadowed news of Warren Buffett's $5 billion investment in Goldman Sachs
But Nasdaq edged higher as investors bet that business spending on technology would rise if and when the bailout becomes law.
Worries that congressional wrangling could delay or weaken the Bush administration's plan to mop up bad mortgage debts from banks' balance sheets held sway over the market, a day after it suffered its worst 2-day slide in six years.
Investors worried that without action, banks would not resume lending normally, risking more harm to the economy and the profit outlook.
Shares of economic bellwether General Electric
But shares of Goldman Sachs climbed 1.4 percent to $126.89 on the New York Stock Exchange, while Berkshire Hathaway
The Dow Jones industrial average <.DJI> slipped 1.60 points, or 0.01 percent, to 10,852.57. The Standard & Poor's 500 Index <.SPX> inched up 1.33 points, or 0.11 percent, to 1,189.55. The Nasdaq Composite Index <.IXIC> climbed 11.77 points, or 0.55 percent, to 2,165.10.
"The resistance we're seeing in Washington (to the bailout bill) is understandable but frightening at the same time. The longer this drags on and the more bickering we see, the more frightening it is," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
"Whether Buffett's called a bottom, I don't think anyone knows. But he's got a long enough horizon to say this over time is a good deal."
Among the Nasdaq gainers, software maker Oracle Corp
Bernanke, testifying before Congress' Joint Economic Committee, said, "The intensification of financial stress in recent weeks, which will make lenders still more cautious about extending credit to households and business, could prove a significant further drag on growth."
(Additional reporting by Steven C Johnson; Editing by Kenneth Barry)