Yellen, Boehner In Focus As Stocks Rise - U.S. Commentary

(RTTNews) - U.S. stocks are showing notable gains in mid-day trading on Friday, bouncing back after three days of losses. Comments from the nation's top central banker cleared up some of the uncertainty surrounding the outlook for interest rates.

Meanwhile, investors are also responding to news that John Boehner has decided to step down from his role as Speaker of the House, a move that could alter the political landscape in Washington as lawmakers stare down a possible government shut down.

The Dow Jones Industrial Average is up 197 points, or 1.2, to reach 16,394. The Nasdaq is higher by 16 points, or 0.3 percent, to 4,750 points. The S&P 500 has gained 14 points, or 0.7 percent, to reach 1,946.

After three days of losses prompted by uncertainty about when the Fed might raise interest rates, Federal Reserve Chair Janet Yellen gave investors a clear signal with remarks she delivered after the close on Thursday. Yellen stated that the Fed remains on track to raise rates this year, saying the more "prudent strategy is to begin tightening in a timely fashion and at a gradual pace."

Turning to Washington, House Speaker John Boehner announced that he will resign his House set at the end of October. The move comes as lawmakers struggle with the president to avoid a government shut down.

In economic news, growth in the U.S. economy was stronger in the second quarter than people had previously thought. Meanwhile, new data showed that U.S. consumer sentiment has declined in September.

Updated government data showed that the U.S. Gross Domestic Product expanded at a revised rate of 3.9 percent in the second quarter. This was revised up from the 3.7 percent growth that was reported last month.

The University of Michigan's final September reading on the overall index on consumer sentiment came in at 87.2, down from 91.9 in August.