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Stocks Surge After Senate Reaches Deal To Avoid Default

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NEW YORK, NY - OCTOBER 16: Traders work on the floor of the New York Stock Exchange on October 16, 2013 in New York City. As investors anxiously wait to see if lawmakers can come to an agreement before tomorrow's debt ceiling deadline, U.S. stocks were higher in morning trading today with both the Dow Jones industrial average and the S&P 500 up. (Photo by Spencer Platt/Getty Images) | Getty

NEW YORK (AP) — Stocks are surging on Wall Street after Senate leaders reached a deal that would avoid a U.S. default and reopen the government after 16 days of being partially shut down.

The Dow Jones industrial average jumped 205 points, or 1.4 percent, to close at 15,373 Wednesday.

The Standard & Poor's 500 index rose 23 points, or 1.4 percent, 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 percent, 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.

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