Wall Street closes more than 1% higher

United States stocks closed more than 1% higher after new Federal Reserve chair Janet Yellen told Congress she has no plans to alter monetary policy set under predecessor Ben Bernanke.

At the closing bell, the Dow Jones Industrial Average surged 192.92 points, or 1.22%, to 15,994.71.

The broad-based S&P 500 added 19.90 points, 1.11%, to 1,819.74, while the tech-heavy Nasdaq Composite Index advanced 42.87 points, or 1.03%, to 4,191.04.

The strong gains suggested the market was reassured by Yellen's statement that she expects "a great deal of continuity" in Fed policy.

Ms Yellen confirmed the Fed expects to keep rates near zero "well past the time" the jobless rate hits 6.5%.

The Fed has said it plans to gradually scale back stimulus while keeping interest rates very low until there is significant economic improvement.

Yellen's prepared remarks "didn't contain any major surprises," said Briefing.com analyst Patrick O'Hare.

Investors were also cheered by news a plan to lift the debt ceiling in the US would likely pass the House this week. Republican John Boehner said his party would support a lift to the debt limit with no conditions attached.

The development came after Treasury Secretary Jacob Lew warned last week of the risk of default.