U.S. stock futures rose Monday evening, keying off a day-session rally after lawmakers in Washington reached a deal on tax rates for the new year.
Futures for the S&P 500 Index climbed 3.5 points, or 0.3%, and those for the Dow Jones Industrial Average added 16 points or 0.1%.
The moves came in the wake of an announcement by Senate Republican leader Mitch McConnell that lawmakers reached an agreement on all tax issues related to the so-called fiscal cliff — the group of tax increases and spending cuts set to begin hitting the economy on Tuesday.
McConnell said negotiators were “very, very close” to a broader budget deal.
Stocks in the regular session surged as details of the tax agreement began to emerge.
Among the moves, a Republican aide said Republicans and Democrats agreed on extending current tax rates for family incomes below $450,000 and taxing capital gains and dividends at 20% for incomes above $450,000 compared with the current 15%.
The Senate hadn’t yet scheduled a vote on the deal. The House of Representatives didn’t plan to vote on any deal that day, which will push the U.S. — briefly at least — over the fiscal cliff.
In the regular session, the Dow Jones Industrial Average rose 166 points, or 1.3%, to 13,104.14, locking in a 7.3% rise for 2012.
The S&P 500 index advanced 1.7% to 1,426.19, and the Nasdaq Composite index rose 2% to 3,019.51 in the daily session.
The S&P 500 index rose 13% and the Nasdaq leapt 15.9% in 2012.
U.S. markets were due to close Tuesday for New Year’s Day, reopening Wednesday.
Marketwatch
