Debt Limit Relief Appears Closer And That Sets Buyers Loose In The Stock Market

By @gmorcroft on

U.S. stocks rallied sharply on Thursday as investors grasped at the hope that the first positive signals out of Washington in weeks might translate into some kind of deal to avoid a U.S. default in as little as a week.

The Dow Jones Industrial Average, a bellwether index of 30 major U.S. shares, rose more than 200 points on Thursday to just above 15,000 after House Republicans proposed a six-week extension of the debt limit. The idea is that the cooling off period would allow for discussion toward a more permamnent solution.

The House Republicans are expected to hold a press conference about 11 a.m., and later this afternoon their leaders are scheduled to meet with President Barack Obama at 435 p.m.

With the debt limit deadline a week away, there is a strong contingent of congressional Republicans and conservative policy shop analysts in Washington who deny that the United States will default if the debt ceiling is not raised.

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