U.S. stocks extended gains into a second session Tuesday, rising on signs of progress on Capitol Hill in reaching an accord to avoid steep spending cuts and tax increases next year.
“We’re seeing negotiations continue. Eventually they will come up with a deal, as I don’t think the sides are that far apart,” said David Kelly, chief market strategist at J.P. Morgan Funds.
Equities have risen on increased odds that the uncertainty presented by the so-called fiscal cliff would soon end, taking one of the risks to the economic forecast off the table, Kelly said.
