Stocks Are Going Bonkers As The Default Crisis Is Being Defused

Alcoa aluminium obama american flagREUTERS/Kevin LamarqueU.S. President Barack Obama smiles as he arrives to speak to workers at the Alcoa Davenport Works Factory in Bettendorf, Iowa, June 28, 2011.

Markets are surging today.

The Dow is up 300 points. The S&P 500 is up 35 points. Both rallies represent 2.1% gains for the day.

“It looks like House Republicans are preparing to move a short-term debt ceiling increase that would provide a framework for negotiations with President Barack Obama,” reported BI’s Brett Logiurato.

House Speaker John Boehner is expected to seek support for a six-week extension to the debt ceiling.

This news has been crushing Treasury bills.

The impending October 17 debt ceiling and potential default by the U.S. was arguably the biggest near-term uncertainty to the markets.

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