U.S. stocks opened higher on Monday (November 19), with the S&P 500 rising 1 percent, as signs of progress in talks to resolve the fiscal crunch encouraged investors at the start of a holiday-shortened week.

The optimism was fuelled by comments from U.S. lawmakers who indicated that compromises are possible in negotiations to avert $600 billion in tax increases and spending cuts due to start in January - the "fiscal cliff" that threatens to send the economy back into recession.

The Dow Jones industrial average gained 100.14 points, or 0.80 percent, to 12,688.45. The Standard & Poor's 500 Index rose 13.76 points, or 1.01 percent, to 1,373.64. The Nasdaq Composite Index climbed 33.70 points, or 1.18 percent, to 2,886.83.