U.S. stocks close higher as bond yields stabilize

NEW YORK, Feb. 26 (Xinhua) -- U.S. stocks closed higher on Monday amid stabilization in Treasury rates.

The Dow Jones Industrial Average gained 399.28 points, or 1.58 percent, to 25,709.27. The S&P 500 increased 32.30 points, or 1.18 percent, to 2,779.60. The Nasdaq Composite Index was up 84.07 points, or 1.15 percent, to 7,421.46.

At the latest reading, the benchmark 10-year Treasury yield traded at 2.837 percent, below its high of 2.956 percent hit last Wednesday. The yield stabilized just under the key psychological level of 3 percent over the past weeks, leaving stocks some breathing room.

The Wall Street has been closely following any updates from the Federal Reserve, looking for clues of interest rate hike pace.

On Friday, the central bank released a monetary policy report saying that it is expected to continue gradual interest rate hikes this year on the expectation of stronger economic outlook.

Despite the recent market turbulence, the Fed still held that overall vulnerabilities in the U.S. financial system remain moderate on balance.

On Tuesday, new Fed chair Jerome Powell will present his first Congress testimony.

On the economic front, sales of new single-family homes fell for a second straight month in January, said the Commerce Department on Monday.

According to the department, new home sales dropped 7.8 percent to a seasonally adjusted annual rate of 593,000 units last month, the lowest level since August 2017.

December's sales pace was revised up to 643,000 units from the previously reported 625,000 units.

For Chinese companies listed in the United States, shares of Chinese e-commerce giant Alibaba gained 0.47 percent to settle at 194.17 dollars, while shares of another Chinese technology company Baidu increased 2.2 percent to close at 256.25 dollars. Enditem