NEW YORK -- Stocks soared more than 1.3% on signs of last-minute progress in negotiations between President Obama and Congress to avoid the looming "fiscal cliff."
The Dow Jones industrial average jumped 166 points, or 1.3%, closing out 2012 at 13,104. The blue chip index finished the year up 7.3%.
The broader Standard & Poor's 500 index gained 24 points, or 1.7%, closing at 1,426. The benchmark index ended the year up 13.3%.
The technology-heavy Nasdaq composite index shot up 59 points, or 2%, to 3,020. For the year, the Nasdaq was up 16%.
Major U.S. stock indexes showed little movement for much of the last trading day of 2012.
But investors jumped back into the market in the early afternoon as Obama announced a deal to avert the year-end automatic tax increases and spending cuts was close.