Wall Street rallied in trading Tuesday (12/18/2012) local time, welcomed the positive developments in the discussion of the fiscal abyss. The broader Standard & Poor's 500 Index reached its best level in two months and commodity prices rose. U.S. debt prices tenor of 30 years was shot to three-month highs. broader S & P 500 advanced 1.1 percent to 1446.79 at 4 pm in New York. The volume of transactions 21 percent greater than the volume of average daily transactions in a month. The energy sector, technology, and finance rose 1.5 per cent and lead the gains among 10 sectors of the S & P 500. Dow Jones also rallied 0.9 percent to 13356.06.
According to Bloomberg, President Barack Obama delivered a budget proposal that would cut 1 , 2 trillion dollars of federal spending but would raise taxes by the same amount over the next decade. Yesterday, the European Central Bank head Mario Draghi said the ECB policy and governance reforms in the eurozone has improved confidence in the market that will help the economic recovery slowly.
"There is a sign of progress negotiating fiscal abyss. had people afraid to go into the stock and it would be one thing that will make them come back," said Brian Gendrau, market strategist El Segundo, California. homebuilders index that indicates the U.S. housing rally 2.3 per cent, indicating confidence builders began covering the property in December to its best level in six years. Apple Inc.. shot 2.9 percent for a second day
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.