Summary Box: Tax-cut rally fades; Dow ends down 3 (AP)

TAX BREAK: A deal between President Barack Obama and Republican leaders on extending tax cuts sent stock prices higher for much of the day, but the rally faded by late afternoon.

NEAR 2010 HIGHS: The Standard & Poor's 500 index closed within two points of its 2010 high reached on Nov. 5.

BONDS WHACKED: Bond prices slumped, sending their yields higher, as traders anticipated that the tax cuts would swell the budget deficit. The yield on the benchmar 10-year Treasury note jumped to 3.13 percent from 2.93 percent late Monday, its highest level since June 22.


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