“U.S. stock futures surged as part of a global rally for equities, with investors extending their New Year celebration after Congress reached a budget agreement,” Tomi Kilgore reports for The Wall Street Journal. “Congress passed legislation late Tuesday that prevented most impending tax increases and postponed spending cuts by two months, while raising taxes on the wealthiest 2% of Americans.”

“About 90 minutes ahead of the open, Dow Jones Industrial Average futures shot up 193 points, or 1.5%, to 13220,” Kilgore reports. “Standard & Poor’s 500-stock index futures climbed 26 points, or 1.8%, to 1446 and Nasdaq 100 futures powered up 53 points, or 2%, to 2708. Changes in stock futures don’t always accurately predict stock moves after the opening bell.”

Kilgore reports, “European markets rallied sharply, with the Stoxx Europe 600 up 1.9% and on track for the highest close since February 2011, as the U.S. budget deal overshadowed some disappointing economic data. Among regional markets, Germany’s shot up 2.2% to a five-year high and the U.K.’s FTSE 100 climbed 2.3% to a 1 1/2-year high… Apple climbed 2.8% ahead of the open, after running up 4.4% on Monday.”

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