U.S. stocks rebound amid Yellen's speech

U.S. stocks ended higher after wavering in a tight range Monday, as investors digested a speech from Federal Reserve Chair Janet Yellen.

The Dow Jones Industrial Average rose 39.65 points, or 0.20 percent, to 19,883.06. The S&P 500 added 4.46 points, or 0.20 percent, to 2,262.53. The Nasdaq Composite Index gained 20.28 points, or 0.37 percent, to 5,457.44.

Yellen said at a University of Baltimore commencement ceremony Monday that the U.S. has the strongest jobs market in nearly a decade, and there are indications wage growth is picking up, according to the CNBC.

Last week, the U.S. central bank decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent.

The Fed also released its updated economic projections, which indicated that the central bank forecasts three rate hikes next year, while in its September projections, Fed officials expected only two rate hikes in 2017.

On the economic front, adjusted for seasonal influences, the Markit Flash U.S. Services PMI Business Activity Index posted 53.4 in December, down slightly from 54.6 in November but above the 50.0 no-change value for the tenth consecutive month.

Overseas, European equities closed mixed Monday. German benchmark DAX index at Frankfurt Stock Exchange increased 0.20 percent, while French benchmark index CAC 40 dipped 0.22 percent.

In Asia, Tokyo shares inched down Monday with the Nikkei index declining for the first time in 10 trading days. The 225-issue Nikkei Stock Average fell 0.05 percent to 19,391.60. Enditem