Major US indices soared over 2% as Washington moved closer to a short-term increase in the debt limit. Today marked the second biggest positive day of the year for US stocks. However, the financial markets aren't out the woods just yet. The government shutdown is not being addressed in this proposed debt ceiling extension. Moreover, the debt deal will only give politicians 6 weeks to figure how to resolve their differences. For the time being though, investors are placated. The VIX (the investor fear gauge) dropped 16% - all the way back down to the 16 handle - and well below the historical average of 20. Investors want to believe the government will solve its self-induced problems. I'm not sure I share their faith, but at least we've avoided a market meltdown... so far.
Please sign in to comment on this wire.