U.S. Stocks Advance as Obama and Congress Reach a Budget Deal


U.S. stocks made very impressive gains on Monday. This allowed the S&P 500 to mark its last trading day of the year with the biggest surge since 1974. All of this came about as traders were optimistic that a budget deal would be reached. After the U.S. markets closed, President Obama and the Congress did agree on a deal. This was the perfect way to end 2012, as traders are now looking forward to the trading year of 2013.

The Dow Jones finished Monday’s trading session higher by 1.28%. The Nasdaq Composite index advanced 2% and the S&P 500 climbed 1.69%.
The leading U.S. stocks surged on Monday, which is in contrast to the losses which they made on Friday. Caterpillar rose 3.17%. Hewlett Packard gained 4.02%. General Electric rose 2.59%.

There was a lot of volatility with regards to European equities yesterday. France’s CAC 40 climbed 0.58%. The U.K.’ FTSE 100 slumped 0.47%. The DAX also ended the trading session lower.

Now traders can look back at the investment which they made in 2012, and come up with new trading strategies for 2013. One factor to take into account is the latest fiscal deal reached late last night. This may lend a helping hand to leading U.S. and European stocks.

U.S. stock trading is set to resume on Wednesday, which means financial investors will need to be on alert if they want to get a good head start. Stocks that are forecasted to be big movers in the next few trading days are Apple, Microsoft and Facebook. Therefore, stay ahead of events each trading day.