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U.S. equity markets lurched higher Tuesday amid signs of progress in American fiscal talks and stability in monetary policy.
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The Dow Jones Industrial Average zoomed higher by 193 points, or 1.2%, to 15995, the S&P 500 climbed 19.9 points, or 1.1%, to 1820 and the Nasdaq Composite advanced 42.9 points, or 1%, to 4191.
The Dow was enjoyed one of its best performances of 2014, as bullish news propelled the blue-chip index back above the 16000 mark in intra-day action. Meanwhile, the broad S&P 500 rose for its fourth day in its biggest climb since January 4.
Sources told FOX Business and Fox News House Republicans are poised to pass a "clean" debt ceiling bill, which would likely limit a fight in Congress over raising the nation's debt limit. Such battles have in the past rattled Wall Street.
"This latest development raises the already high likelihood that Congress will raise the limit by the February 27 deadline," analysts at Goldman Sachs wrote to clients. "Under the legislation the debt limit would be suspended until March 15, 2015 but we expect that the Treasury could use its 'extraordinary measures' to extend borrowing capacity through late 2015."
Janet Yellen gave her first Congressional testimony as head of the powerful central bank.
Yellen said in prepared remarks she stands by the central bank’s current monetary policy. Yellen noted the Fed has kept a close eye on recent volatility in the global financial markets, but said at this point, the movements “don’t pose a substantial risk to the U.S. economic outlook.”
The economic calendar is fairly light, with a report due out on wholesale inventories at 10:00 a.m. ET. The data generally don't shake Wall Street, but they do frequently spark adjustments to investment banks' economic forecasts.
In corporate news, CVS Caremark (NYSE:CVS) shares rose on the back of a quarterly profit advance for the No. 2 U.S. drugstore chain. Sprint (NYSE:S) shares surged after the telecommunications company posted a narrower-than-expected quarterly loss.
Elsewhere, U.S. crude oil futures rose 11 cents, or 0.11%, to $100.17 a barrel. Wholesale New York Harbor gasoline climbed 0.49% to $2.738 a gallon. Gold jumped $13, or 1%, to $1,288 a troy ounce.