NEW YORK: Stocks rose sharply on Wednesday, lifting the Standard & Poor’s 500 index back into the green for the week, after comments by President Barack Obama and House Speaker John Boehner bolstered hopes that a budget deal would be reached.

After a 112-point slide, the Dow Jones industrial average rose as much as 110 points, and finished 106.98 points higher, or 0.8 percent, at 12,985.11.

The S&P 500 index gained 10.99 points, or 0.8 percent, to 1,409.93. The Nasdaq composite advanced 23.99 points, or 0.8 percent, to 2,991.78.

Oil, gold and the dollar declined while Treasury prices rose.

A report said new home sales fell 0.3 percent in October after a 0.8 percent rise the month before.

The U.S. Environmental Protection Agency is temporarily suspending the awarding of new contracts to BP PLC, saying the British oil company displayed a lack of integrity during the Deepwater Horizon oil spill in 2010.

Shares of Green Mountain Coffee Roasters Inc. soared after the maker of Keurig brewers reported fourth-quarter profit that topped expectations.

Express Inc. shares surged after the apparel retailer estimated fourth-quarter net income would beat estimates.