Wall St climbs on economy bets as it looks past 'cliff'
NEW YORK (REUTERS) - United States (US) stocks rallied on strong volume on Tuesday, capping off the S&P 500's best two-day run in a month, on confidence that a deal would be struck in Washington to avoid painful spending cuts and tax hikes that could hurt the economy.
Banks, energy and technology - sectors that would benefit during economic expansion - led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.
The PHLX oil services sector index jumped 3.1 per cent, with eight of its 15 components up 3 per cent or more.
"The view is that the economy is getting better, and that is always good for energy demand," said Mr Shawn Hackett, president at Hackett Financial Advisors in Boynton Beach, Florida.