(NEW YORK) — Wall Street is poised to get a big bounce on Wednesday after the House passed the Senate’s fiscal cliff agreement.
U.S. stock futures shot up after the drama finally ended late Tuesday. Economists had warned hundreds of billions of dollars in automatic tax hikes and spending cuts could have triggered a U.S. recession this year.
Overseas, several leading European averages are up 2 percent on Wednesday as a result of the news. Australian and Hong Kong stock indexes closed overnight at their highest levels since June 2011.
The vote brings tax increases on high earners for the first time in 20 years. Single taxpayers earning more than $400,000 and couples over $450,000 will see their top marginal tax rate go up. The wealthiest Americans will also pay more on capital gains and dividends.
The fiscal cliff deal stops income tax hikes for more than 98 percent of taxpayers.
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Madison Park, Keith Allen and Andreas Preuss, CNN