New York, Dec 9 (DPA) US stocks rose Wednesday, boosted by a proposal to extend tax cuts and news that the government intends to sell at least $15 billion of its shares in American International Group (AIG).

Investors were still considering the implications of a proposal that keeps the George W. Bush-era tax cuts for middle-income earners in place. It also extends cuts for wealthy households with incomes exceeding $250,000.

President Barack Obama said Tuesday the compromise deal with Republicans was "an essential step on the road to recovery", and necessary to avoid placing a greater burden on the middle class.

Meanwhile, the government will sell at least $15 billion of its shares in bailed-out AIG in the new year.

AIG, at one time the world's largest insurance company, had edged to the brink of bankruptcy in 2008 before receiving a $182-billion rescue from US taxpayers.

In exchange, the US government received 92.1 percent ownership of the company.

"We hope to be able to go to the market with a public offering of AIG this spring, but we have work to do to make that happen," Mark Herr, a spokesman for the New York-based insurer, said in a statement.

The blue-chip Dow Jones Industrial Average was up 13.32 points, or 0.12 percent, to 11,372.48. The broader Standard and Poor's 500 index added 4.53 points, or 0.37 percent, to 1,228.28. The technology-heavy Nasdaq Composite Index rose 10.67 points, or 0.41 percent, to 2,609.16.

The US currency fell against the euro to 75.38 euro cents from 75.42 euro cents on Tuesday. The dollar edged up against the Japanese currency to 84.02 yen from 83.51 yen.