Stock rally builds as Fed chief pledges continuity

Global stocks were higher today, as investors waited for the new Federal Reserve chief's testimony to Congress, which might give clues to how quickly the U.S. central bank will withdraw its economic stimulus.

NEW YORK — U.S. stocks closed sharply higher today after the new Federal Reserve chief, Janet Yellen, said she will continue the central bank’s policy of low interest rates.

Investors also welcomed news that Congress appears ready to raise the government’s borrowing limit. That would avoid the kind of political drama that brought the government to the brink of default late last year.

The Dow Jones industrial average jumped 193 points, or 1 percent, to close at 15,995 today. The Dow has notched triple-digit gains in three of the past four trading days.

The Standard & Poor’s 500 index climbed 20 points, or 1 percent, to 1.820. The Nasdaq composite gained 43 points, or 1 percent, to 4,191.

CVS Caremark rose nearly 3 percent after the drugstore chain’s earnings rose.