The Dow Jones industrial average rose 189 points, or 1.3 per cent, to 15,357 in midday trading after news that Senate leaders had reached an agreement to avert a default and reopen the government. The bill must still pass the House of Representatives as well as the Senate.
The Standard & Poor's 500 index was up 21 points, or 1.3 per cent, to 1,719 points. The S&P 500 is now just six points below an all-time high it reached on Sept. 18.
The Nasdaq composite rose 40 points, or 1 per cent, to 3,833.
Yields on Treasury bills fell as investors became less nervous about a potential default by the government.