US stocks rose one per cent yesterday, advancing for a third straight session as Federal Reserve Chair Janet Yellen reaffirmed the central bank’s commitment to keeping interest rates low and Yahoo rallied.
Data showing Chinese economic growth exceeded expectations and US industrial production rose for a second straight month also improved sentiment, though Bank of America and CSX sold off following their results.
Yellen reaffirmed the Fed’s commitment to keep interest rates low, even after ending its bond-buying program, as long as inflation remains below target and unemployment elevated. The Fed’s Beige Book, a report of anecdotal information on business activity, showed that activity picked up in most regions in recent weeks.
Yahoo was the S&P 500’s biggest gainer, rising 6.3 percent to $36.35. Revenue growth accelerated in the last quarter of 2013 for Alibaba, in which Yahoo holds a 24 per cent stake.
Intel shares briefly hit their highest since June 2012 a day after the chipmaker posted a quarterly net profit that exceeded Wall Street's estimates. The stock rose 0.6 percent to end at $26.93. On the downside, Bank of America slid 1.6 per cent to $16.13 after the bank swung to a quarterly loss. CSX results.
The Dow Jones industrial average rose 162.29 points, or 1.00 per cent, to end at 16,424.85. The Standard & Poor’s 500 Index gained 19.33 points, or 1.05 per cent, to finish unofficially at 1,862.31. The Nasdaq Composite Index jumped 52.06 points, or 1.29 per cent, to close at 4,086.23.