US stocks were little changed on Tuesday as the market awaited developments in negotiations in Washington to avert a "fiscal cliff" that could push the US economy into recession. Republicans in Congress proposed steep spending cuts to bring down the budget deficit on Monday but gave no ground on President Barack Obama's call to raise taxes on the wealthiest Americans, and the proposal was quickly dismissed by the White House.

The CBOE volatility index, a gauge of market anxiety, was at 17 but has not traded above 20 since July following its 2012 high near 28 hit in June. The VIX's 10-day Average True Range, an internal volatility measure, is at its lowest since early 2007. The Dow Jones industrial average rose 27.92 points, or 0.22 percent, to 12,993.52. The S&P 500 edged up 0.44 points, or 0.03 percent, to 1,409.90. The Nasdaq Composite fell 4.44 points, or 0.15 percent, to 2,997.76.

Copyright Reuters, 2012