(NEW YORK) — The markets recovered Wednesday from early losses, but investors are still nervous about the possibility of the economy going off the so-called “fiscal cliff.”
The Dow closed at 12,985.11, up 107 points. The Nasdaq gained 24 points, climbing to 2,991.78. The S&P added 11 and closed at 1,409.93.
Investors are closely monitoring the ongoing discussions in Washington that are aimed about avoiding the automatic tax increases for all Americans and deep government spending cuts unless Congress agrees to a deal by the end of the year.
The Federal Reserve’s latest “Beige Book” shows a lot of green, especially in home sales. That helped boost economic growth in October and early this month across much of the U.S. Hurricane Sandy slowed activity in the Northeast a bit, however.
Copyright 2012 ABC News Radio
Ivaylo Vezenkov and Lauren del Valle, CNN
Erin McClam, CNN