The Dow Jones industrial average jumped 205 points, or 1.4 per cent, to close at 15,373 Wednesday.
The Standard & Poor's 500 index rose 23 points, or 1.4 per cent, to 1,721 points. The S&P 500 is just four points below the all-time high it reached on Sept. 18.
The Nasdaq composite rose 45 points, or 1.2 per cent, to 3,839.
Yields on Treasury bills fell sharply as investors became less nervous about a potential default by the government.
The gains were broad. Four stocks rose for every one that fell on the New York Stock Exchange. Trading volume was heavier than usual.