Tech lifts stocks; Dow at new high

Technology companies led U.S. stocks higher Wednesday in a broad rally that helped nudge the Dow Jones industrial average to a new high.

In remarks before Congress, Federal Reserve Chairwoman Janet L. Yellen raised the possibility that the central bank would consider slowing the pace of its interest rate increases if inflation remained persistently below its target level.

The move assuaged some traders’ concerns that the Fed has been moving too quickly to raise interest rates amid a slowdown in inflation and the U.S. economy's sluggish growth.

Yellen's remarks put investors in a buying mood and sent bond yields lower, stoking demand for stocks that pay high dividends. Materials companies also posted hefty gains.

“Investors would prefer lower interest rates, particularly if the economy isn't gaining the kind of traction that would warrant a faster rate-hike path,” said Quincy Krosby, chief market strategist at Prudential Financial.

Stocks climbed in preopening trading as investors began to size up Yellen's prepared remarks, which were released before her testimony. The indexes opened higher across the board and stayed in the green the rest of the day. All 11 sectors in the Standard & Poor’s 500 index notched gains.

The tech sector led the way. Nvidia advanced 4.3% to $162.51. Activision Blizzard climbed 5.2% to $61.02.

Real estate investment trusts and other high-dividend stocks benefited from rising bond prices. Crown Castle International rose 1.8% to $100.05. American Tower rose 2.3% to $133.88.

The yield on the 10-year Treasury note fell to 2.32% from 2.37%.

NRG Energy was the biggest gainer in the S&P 500. It soared 29.4% to $21.09 after the company said it plans to raise as much as $4 billion through asset sales in order to lower its debt.

Several airlines rose after American Airlines Group and United Continental reported solid results for June. American Airlines climbed 4.2% to $53.80. United Continental went up 4.7% to $80.53. Delta Air Lines increased 2.2% to $55.48.

Oil prices climbed after a report came out showing that U.S. crude oil inventories declined sharply last week. Benchmark U.S. crude rose 45 cents, or 1%, to $45.49 a barrel. Brent crude rose 22 cents, or 0.5%, to $47.74 a barrel. Wholesale gasoline stayed at $1.52 a gallon. Heating oil fell less than 1 cent to $1.47 a gallon. Natural gas fell 6 cents, or 2%, to $2.99 per 1,000 cubic feet.

The dollar fell to 113.25 yen from 113.84 yen. The euro fell to $1.1416 from $1.1476.

Gold rose $4.40 to $1,219.10 an ounce. Silver rose 14 cents to $15.89 an ounce. Copper rose 1 cent to $2.68 a pound.