NEW YORK (AP) - U.S. stocks rose Tuesday as investors were relieved to hear Federal Reserve Chair Janet Yellen say the Fed would remain cautious in raising interest rates.
Stocks hardly budged for most of the day as investors were occupied by Yellen's Congressional appearance and the looming vote on Britain's possible withdrawal from the European Union.
Energy and phone companies made the biggest gains. For the second day in a row, stocks traded higher and bond prices fell as investors felt a bit surer that Britain will stay in the EU.
Yellen told the Senate that the Fed will proceed cautiously in raising interest rates because of the uncertainties facing the U.S. economy. She said the central bank will watch carefully to see if the recent slowdown in job growth is temporary or a sign of a bigger problem. The Fed left interest rates unchanged in June and will meet again in late July. Yellen's testimony will conclude on Wednesday.
"The market seems to have responded well to Dr. Yellen's tone of caution," said Phil Orlando, chief equity strategist for Federated Investors.
The Dow Jones industrial average picked up 24.86 points, or 0.1 percent, to 17,829.73. The Standard & Poor's 500 index rose 5.65 points, or 0.3 percent, to 2,088.90. The Nasdaq composite added 6.55 points, or 0.1 percent, to 4,843.76.