Wall Street jump in another 'fiscal cliff' swing
NEW YORK (REUTERS) - United States (US) stocks rallied on Wednesday after comments from House Speaker John Boehner, the top Republican in Congress, on a possible compromise to avoid the "fiscal cliff" turned the market around.
The S&P 500 rebounded from a 1 per cent decline, gaining more than 20 points from its low after Boehner, an Ohio Republican, said he was optimistic that a budget deal to avoid big spending cuts and tax hikes can be worked out. President Barack Obama added to the good feelings, saying he hoped to get a deal done in the next four weeks.
Whether or not those remarks reflect the reality of negotiations is another story.
"The fiscal cliff is dominating the discussion, and short term, we're a little bit too optimistic on it being fixed right away," said Mr John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York.