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Stocks soar on Yellen's steady tone

Investors Tuesday, Feb. 11, 2012, heard new Fed

Investors Tuesday, Feb. 11, 2012, heard new Fed Chair Janet Yellen tell Congress that the U.S. labor market is a long way from recovery. Traders Monday, Feb. 10, 2014 watched stocks end the day flat after quiet trading. Credit: Getty Images / Spencer Platt

Reassuring words from the new head of the Federal Reserve sent stocks soaring Tuesday and gave the market its longest winning streak this year.

The Dow Jones industrial average jumped nearly 200 points after Fed Chair Janet Yellen said she would continue the central bank's market-friendly, low-interest rate policies.

Investors also welcomed news that Congress appeared poised to raise the U.S. borrowing limit without the political drama that happened late last year. Last night the House voted to extend Treasury's normal borrowing for another 13 months, easing the threat of a disastrous default on government debt.

"Many of the risks everyone had their eyes on for 2014 are quickly being cleared away," said Kristina Hooper, head of U.S. investment strategies for Allianz Global Investors.

Yesterday, the Dow Jones industrial average rose 192.98 points to 15,994.77. It was the Dow's third triple-digit advance in four days.

The Standard & Poor's 500 index rose 1.11 percent to 1,819.75, and the Nasdaq composite rose 1.03 percent to 4,191.04. The Nasdaq is now in positive territory for 2014, while the S&P 500 and Dow are down 1.5 percent and 3.5 percent for the year, respectively. -- AP

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