spike since december of 2011. the nasdaq jumped 93. the s&p gained 36. team fox coverage continues with gerri willis from the fox business network now. gerri, these were broad gains among lots of different types of stocks. you bet. and the one you didn t mention, the small cap index posted its highest levels ever. so big gains for stocks. what was going on? well, stocks had been trading on uncertainty. we didn t know what tax rates were going to be. we didn t know what spending was going to be. with that confusion gone, stocks rose and rose dramatically. i have got to tell you here though that future not necessarily looking as happy as the finish today. jon? jon: so how long do they expect this rally to last? well, you know, it all depends on what congress does. it s a critically important now to the stock market. we have got two things coming up. we have the fiscal cliff. we have got sequestration coming up. big questions about government spending on both of those issues. i have
ok, did she seriously just say that? geico. just click away with our free mobile app. mommy s having a french fry. yes she is, yes she is. [ bop ] [ male announcer ] could ve had a v8. 100% vegetable juice, with three of your daily vegetable servings in every little bottle. . trace: up updating our top story tonight we are about to go off the fiscal cliff. that s the word from washington. some senators say they are still hoping to vote on a deal tonight but the house has already called it quits and won t be back until tomorrow. team fox coverage continues. mike emanuel live on capitol
of course, that s the other big issue in this fiscal cliff standoff. we have team fox coverage. mike emanuel is live on capitol hill. but first to ed henry at the white house. ed, it looks as if we are taking the plunge. it does, trace. but what i think the white house is hoping here tonight is that lawmakers are going to have some framework by midnight tonight that basically says votes as soon as tomorrow or maybe even in early wee hours, 1:00 a.m., 2:00 a.m. to start moving forward on this so at least the markets get the signal that they will retroactively make sure that the tax rates don t go up. that the massive spending cuts don t take effect. all of this is still hanging in the balance. as you mentioned, conservatives not happy that there are no new spending cuts here. liberals not happy over the fact that they believe the president gave in too much to republicans on taxes setting a threshold of $450,000 a year instead of what they wanted which was 250,000. bottom line the pres
peter barnes live for us at the white house. thank you. as we had reported sources said lawmakers have agreed to let tax cuts expire for some the wealthiest americans as part of their framework for avoiding the fiscal cliff. but spending cuts still very much up in the air. team fox coverage continues with rich edson on capitol hill. rich, what s the latest on that framework. trace, in just a few hours, tax rates across the board are scheduled to increase. this proposal deals with it. this is the framework that senators have been discussing here. families would pay the same income tax rates they do now on the first $450,000 of income amounts of more than that they get a tax increase. one year extension of long-term unemployment benefits. doctors are scheduled to get a significant pay cut. this plan prevents that and on the estate tax, can you palings pass on $5 million tax tree anything more the government takes 40%, trace. trace: what s the hold-up from lawmakers exactly? in so
lawmakers moved closer to a deal. the dow shot up 166 points for its first positive day in more than a week. the nasdaq gaining 59 to close back above 3,000. the s&p up 24. we have team fox coverage from the fox business network, rich edson is on capitol hill. first to peter barnes with the market reaction. peter? well, trace. the dow was up more than 1% today on the prospect that at least all or most of the bush tax cuts could be extended for most people under this framework deal. that would be worth more than $3 trillion over the next 10 years. that would be $3 trillion or more that would stay in consumer s pockets so they could go out and buy cars and houses and refrigerators and ipads and iphones which would be good for corporate profits. if we get a fiscal deal that really addresses the long-term trajectory, that might be the final piece of