Tue., 4:10 pm: Stock rally builds as Fed chief pledges continuity
NEW YORK (AP) – U.S. stocks are surging as the new head of the Federal Reserve, Janet Yellen, says she will continue the central bank’s low-interest rate policies.
Investors also cheered news Tuesday that Congress appears poised to raise the U.S. government’s borrowing limit without the political drama that happened late last year. That would avert the risk of a U.S. default.
The Dow Jones industrial average jumped 207 points, or 1.3 percent, to 16,009 as of 2:43 p.m. today.
The Standard & Poor’s 500 index rose 20 points, or 1.1 percent, to 1,820.
CVS Caremark rose 3 percent after the drugstore operator reported a 12 percent increase in earnings.