Stocks Rise As Yellen Softens Tone On Tightening -- U.S. Commentary

(RTTNews) - Stocks rose Monday on the final trading session of the fourth quarter, as Federal Reserve Chair Janet Yellen reassured investors on ultra-easy monetary policy.

Yellen, who spooked the markets earlier this month by suggesting that the Fed is likely to begin raising interest rates by the middle of next year, now says the central bank will offer "extraordinary" support for "some time to come."

Meanwhile, traders largely shrugged off a report from MNI Indicators showing that Chicago-area business activity grew at a notably slower rate in the month of March.

The major averages all rallied, bolstered by optimism that China and Europe will unveil fresh stimulus measures in the coming weeks.

The S&P 500 ended the day 8.40 points, or 0.5 percent, higher at 1,872.33, and recorded a 0.7 percent gain for the month.

All key S&P sectors were in positive territory, with financials. posting solid gains.

The Nasdaq Composite finished up 43.24 points, or 1 percent at 4,198.99, but was down 2.5 percent in March.

The Dow Jones Industrial Average closed up 134.60 points, or 0.8 percent, at 16,457.66, pushing into slightly positive territory for the month.

The NYSE Arca Biotechnology Index jumped 3.4 percent today after ending the previous session at its worst closing level since early February.

Biogen Idec (BIIB) is turning in one of the biotech sector's best performances on news that the FDA has approved the company's hemophilia B treatment Alprolix. The stock was up 4 percent.

Software stocks performed well, with Oracle (ORCL) and Microsoft (MSFT) are posting standout gains.

In the retail space, Lululemon (LULU) rallied on an upgrade.

General Motors (GM) CEO Mary Barra apologized for the automaker's ignition issue ahead of Tuesday's meeting with Congress. Shares eased 0.9 percent.

Johnson & Johnson Co. (JNJ) accepted a $4.15 billion offer from private-equity giant Carlyle Group L.P. (CG) to acquire its Ortho-Clinical Diagnostics business. J&J shares were up 0.8 percent.