(NEW YORK) — Stocks called it a week with a bit of a bounce Friday. The indexes had been in a slump since last week’s presidential election, but jumped Friday on news from the White House that fiscal talks among bipartisan leadership were “constructive.”
The Dow closed at 12,588.31, up 46 points. The Nasdaq gained 16 points, closing the session at 2,853.13. The S&P added seven points, ending the week at 1,359.88.
Investors kept a watchful eye on budget talks at the White House with House and Senate leaders. The clock is ticking down toward a Jan. 1 “fiscal cliff,” when automatic tax hikes for all Americans and deep government spending cuts are set to take effect unless a deal is reached before then.
Meanwhile, the federal agency that insures mortgages for millions of low- and middle-income borrowers is facing losses of more than $16 billion and may require taxpayer support. Government officials say the Federal Housing Administration has enough cash to pay insurance claims against mortgage defaults.
Copyright 2012 ABC News Radio
Sam Turner, Deseret News
Chris Isidore and Robert Mclean, CNN Newswire