View the article online at http://citywire.co.uk/money/article/a647821
Overnight Markets: Wall Street jumps on "cliff" deal hopes
The S&P 500 gained 13.4% in 2012, registering its best final-day rally since 1974.
Wall Street surged on the last day of the year by the most since 1974, with the Standard & Poor's 500 Index registering a gain of 13.4% in 2012, as lawmakers in Washington moved closer to a resolution to the "fiscal cliff" negotiations.
The Dow Jones industrial average gained 166 points, or 1.28%, to end at 13,104. The Standard & Poor's 500 Index gained 24 points, or 1.69%, to finish at 1,426. The Nasdaq Composite Index gained 59 points, or 2%, to close at 3,020. The Dow rose 7.3% in 2012 and the Nasdaq climbed 15.9%.
Stocks oscillated yesterday on the headlines out of Washington, as both President Barack Obama and Republican Senate leader Mitch McConnell issued statements signalling a deal to avert the cliff was close.
Sources said an emerging deal, if adopted by Congress and President Obama, would raise $600 billion in revenue over the next 10 years by increasing tax rates for individuals making more than $400,000 and households earning above $450,000 annually.
Financials were the strongest gainer this year, led by Bank of America shares, which more than doubled. However, defensively oriented utilities ended the year lower, falling 2.9%.
Yesterday, Apple Inc shares rose 4.4%, helping lift the information technology sector and the Nasdaq. For the year, Apple gained 31.4%, ending with a market value of about $501.4 billion.
Facebook Inc. climbed 2.7% after Bank of Montreal raised its rating on the company to outperform from underperform.
Hewlett-Packard gained 4.2% for the biggest gain in the Dow. Caterpillar jumped 3.2%, while General Electric Co. advanced 2.7%.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.