Investing.com - Talk congressional Republicans are warming up to the idea of raising taxes on top U.S. earners to avoid a fiscal cliff sent stocks gaining on Monday.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.76%, the S&P 500 index was up 1.19%, while the Nasdaq Composite index rose 1.32%.
At the end of this year, the Bush-era tax breaks and other benefits expire at the same time deep cuts to public spending kick in, a combination known as a fiscal cliff that could push the U.S. economy into a recession next year if the nation's leadership fails to avoid it.
The White House has insisted fiscal reforms should include tax hikes on those earning USD250,000 a year.
Republicans in Congress have opposed tax hikes in the past, stressing fiscal reforms should focus more on spending cuts and capping loopholes and write-offs.
However, reports that Republicans would accept fiscal reforms that hike taxes on those earning USD1 million a year sent stocks rising even though the White House rejected the offer.
Sentiments continued to build throughout the session that policymakers will work to avoid the cliff and prevent the world's largest economy from sliding into a fresh downturn.
Elsewhere, markets took in stride data revealing that New York business activity came in weaker than expected.
The Empire State business conditions index dropped to -8.1 in December from a reading of -5.2 the previous month, missing market calls for a -1.0 reading.
Leading Dow Jones Industrial Average performers included Bank of America, up 3.97%, Home Depot, up 2.03%, and JPMorgan & Chase, up 1.61%.
The Dow Jones Industrial Average's worst performers included Hewlett-Packard, down 3.46%, Coca-Cola, down 0.37%, and Verizon Communications, down 0.18%.
European indices, meanwhile, finished mixed to lower.
After the close of European trade, the EURO STOXX 50 fell 0.10%, France's CAC 40 fell 0.14%, while Germany's DAX 30 finished up 0.11%. Meanwhile, in the U.K. the FTSE 100 fell 0.16%.
Later Tuesday, the U.S. will release government data on the current account, a broad indicator of economic health.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.76%, the S&P 500 index was up 1.19%, while the Nasdaq Composite index rose 1.32%.
At the end of this year, the Bush-era tax breaks and other benefits expire at the same time deep cuts to public spending kick in, a combination known as a fiscal cliff that could push the U.S. economy into a recession next year if the nation's leadership fails to avoid it.
The White House has insisted fiscal reforms should include tax hikes on those earning USD250,000 a year.
Republicans in Congress have opposed tax hikes in the past, stressing fiscal reforms should focus more on spending cuts and capping loopholes and write-offs.
However, reports that Republicans would accept fiscal reforms that hike taxes on those earning USD1 million a year sent stocks rising even though the White House rejected the offer.
Sentiments continued to build throughout the session that policymakers will work to avoid the cliff and prevent the world's largest economy from sliding into a fresh downturn.
Elsewhere, markets took in stride data revealing that New York business activity came in weaker than expected.
The Empire State business conditions index dropped to -8.1 in December from a reading of -5.2 the previous month, missing market calls for a -1.0 reading.
Leading Dow Jones Industrial Average performers included Bank of America, up 3.97%, Home Depot, up 2.03%, and JPMorgan & Chase, up 1.61%.
The Dow Jones Industrial Average's worst performers included Hewlett-Packard, down 3.46%, Coca-Cola, down 0.37%, and Verizon Communications, down 0.18%.
European indices, meanwhile, finished mixed to lower.
After the close of European trade, the EURO STOXX 50 fell 0.10%, France's CAC 40 fell 0.14%, while Germany's DAX 30 finished up 0.11%. Meanwhile, in the U.K. the FTSE 100 fell 0.16%.
Later Tuesday, the U.S. will release government data on the current account, a broad indicator of economic health.