NEW YORK (AP) -- Stocks are sharply higher on Wall Street after lawmakers reached a last-minute budget agreement to avert sweeping tax increases and cuts to government spending programs.
The Dow is off its highs of the day, but remained up more than 200 points in early afternoon trading. The Dow had been as much as 273 points higher in the early going.
The Standard & Poor's 500 and the Nasdaq are more than 2 percent higher.
Banks and technology stocks led the gains. Markets in Europe also rose broadly.
Some market watchers cautioned that the euphoria could be short-lived. The late-night deal leaves many questions unresolved, including how to make long-term cuts to the U.S. budget deficit.