Dow rises 200 points as investors welcome steady tone from new Federal Reserve chief

The Associated Press

FILE - In this Wednesday, Feb. 5, 2014, file photo, traders work on the floor of the New York Stock Exchange. Global stocks were higher Tuesday, Feb. 11, 2014, 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. (AP Photo/Richard Drew, File)

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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. Tuesday.

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.

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