U.S. stocks rallied on Monday amid hopes that the United States might avoid the dire consequences of the "fiscal cliff."

U.S. President Barack Obama and the congressional leaders met for the first time last Friday after the U.S. presidential election.

After the meeting, congressional leaders expressed their confidence in reaching a debt deal to avert the fiscal disaster, a combination of automatic spending cuts and spikes in tax rates that could dragged the U.S. economy into a severe recession.

Also adding on the gains, existing home sales unexpectedly rose 2.1 percent in October to a seasonally adjusted annual rate of 4. 79 million units, according to the National Association of Realtors.

In midday trading, the Dow Jones Industrial Average rose 153.60 points, or 1.22 percent, to 12,741.91. The Standard & Poor's 500 gained 22.70 points, or 1.67 percent, to 1,382.58. The Nasdaq Composite Index jumped 50.41 points, or 1.77 percent, to 2,903.54. Endi