S&P and Dow Logged Highest Close of the Year

U.S. stocks ended higher on Tuesday, with both the S&P and Dow logged their highest closes of the year, after Federal Reserve Chairwoman Janet Yellen emphasized that policy makers would take a cautious approach to raising interest rates. The Dow industrials rose 98.72 points, or 0.56%, to 17,633.11. The S&P 500 gained 17.96 points, or 0.88%, to 2,055.03. The Nasdaq added 79.84 points, or 1.67%, to 4,846.62.

Federal Reserve Chair Janet Yellen said on Tuesday the U.S. central bank should proceed “cautiously” as it looks to raise interest rates, because inflation has not yet proven durable against the backdrop of looming global risks to the U.S economy.

Consumer confidence rebounded more than forecast in March as American households grew upbeat about prospects for the labor market and economy. The Conference Board’s sentiment index rose to 96.2 this month from a revised 94 reading in February that was higher than previously reported, the New York-based private research group said Tuesday.

U.S. solar energy company SunEdison Inc (SUNE.N), whose aggressive acquisition strategy has saddled it with almost $12 billion of debt, is at “substantial risk” of bankruptcy, one of its two publicly listed units warned on Tuesday.

Conn’s Inc. reported disappointing fourth-quarter earnings Tuesday and said it expects revenue for the year to grow less than Wall Street expected. Conn’s reported fiscal fourth-quarter net income of $1.1 million, or 3 cents per share, in the three months ending Jan. 31, compared with $15.5 million, or 42 cents per share, a year ago. Revenue rose 7 percent to $456.8 million in the period.