REUTERS/Kevin Lamarque
U.S. President Barack Obama smiles as he arrives to speak to workers at the Alcoa Davenport Works Factory in Bettendorf, Iowa, June 28, 2011.
The Dow is up 165 points. The S&P 500 is up 19 points. Both rallies represent 1.1% 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," concluded BI's Brett Logiurato citing multiple reports.
The impending October 17 debt ceiling and potential default by the U.S. was arguably the biggest near-term risk to the markets.
With the risk receding, investors appear to be increasingly willing to take more risk.