US markets welcome Congress deal Wall Street stocks surged in the first trading session of the new year, rising sharply after US policy makers reached a last-minute budget accord to prevent huge tax rises and spending cuts. The S&P 500 climbed 2 per cent to 1,453.98 in early activity in New York on Wednesday. The Nasdaq Composite index gained 2.5 per cent to 3,094.12. The Dow Jones Industrial Average moved 1.8 per cent higher to 13,333.45. The strong gains came as investors reacted positively to a resolution of the so-called US fiscal cliff late on Tuesday, after the House of Representatives approved a measure passed in the Senate earlier in the day. Many analysts had projected that the combined effects of higher taxes and deep spending cuts would significantly impact the US economy, derailing a nascent recovery. The CBOE's Vix index, which tracks implied volatility on the S&P 500, fell 14.7 per cent to 15.37. A rise in the Vix, known as Wall Street's "fear gauge," is considered an important indicator of investor uncertainty and had reached multi-month highs on growing concern that a deal would not be struck. All 10 industry measures on the S&P 500 were sharply higher. The gains were led by the S&P 500 information technology index, which rose 2.9 per cent. Apple, the largest company in the world by market capitalisation, recorded robust gains in the early moments of Wednesday's session. The iPad and iPhone maker jumped 3.6 per cent to $551.32 to reach its highest level in nearly a month. Close behind the tech sector were basic materials and industrial sector stocks, which each notched gains of more than 2.5 per cent. Financial stocks, led by some of Wall Street's biggest banks, also moved higher. The gains were led by Citigroup, the US bank, which rose 4.1 per cent to $41.18. In deal news, US rental car chain Avis said it would acquire smaller rival ZipCar for about $500m in cash at a price of $12.25 a share. Shares in Avis rose 5.5 per cent to $20.91, while Zipcar gained 48 per cent to $12.19.