Stock Futures Surge on Fiscal Cliff Deal

January 2, 2013 8:16 AM EST
Stock futures are sharply higher early Wednesday after a fiscal cliff deal, reached late Monday evening, has passed both the Senate and the House and is expected to be signed into law by President Obama shortly.

Dow futures are up 190, S&P 500 futures are up 25 and Nasdaq futures are up 52.50.

Under the deal, individuals making over $400,000, or families making over $450,000, would be subject to higher tax rates. Others would maintain the Bush-era rates. Capital gains tax would rise from the current 15% to roughly 20%. In addition, the estate tax would move up from 35% to 40% for those over $5.12 million.

The deal also delays $110 billion in spending cuts for two months.

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