Street Sees a Major Rally After Cliff Deal; Tech Stocks Surge (AAPL, HPQ)

The last minute budget deal reached in Washington along with technology stock gains pushed the major US indices higher on Wednesday. The passed legislation late on Tuesday will prevent most impending tax hikes and postpone spending cuts by two months. Taxes will be raised on the 2% of Americans who are the wealthiest. Moody's stated that while a cliff deal was reached, there is still much work to be done in the coming weeks. Tech stocks Hewlett-Packard (HPQ) and Apple (AAPL) caused the Dow to have its best single-day point rise since 2011.
Another member of the tech industry, eBay (EBAY) also saw big gains and led the S&P 500 higher. Warren Buffett's MidAmerican Energy has acquired SunPower photovoltaic projects for $2.5 billion. The CBOE Market Volatility Index or "fear gauge" fell to the lowest level in five weeks.

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Published on Jan 2, 2013
By InvestorGuide Staff

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