Stocks surge as Congress hatches fiscal deal

Senate Majority Leader Harry ReidHarry ReidFive takeaways from New Hampshire Senate debate Democrats pounce on Cruz's Supreme Court comments Senate Democratic super PAC sets fundraising record MORE (D-Nev.) and Minority Leader Mitch McConnellMitch McConnellCures bill in jeopardy amid drug pricing push Senate Democratic super PAC sets fundraising record Five takeaways from Florida Senate debate MORE (R-Ky.) huddled with their members on Capitol Hill and hammered out the final details of a deal that could gain congressional approval before the end of the day. 

Senate leaders indicated they would take the reins and vote first as GOP senators such as Ted CruzTed CruzDemocrats pounce on Cruz's Supreme Court comments Brent Budowsky: An epic battle for the future of Congress Cruz: Precedent exists for keeping Supreme Court short-staffed MORE of Texas said he would not stand in the way of quick passage.  

Speaker John BoehnerJohn BoehnerTrump backers lack Ryan alternative Ryan has little margin for error in Speaker vote Top Lobbyists 2016: Hired Guns MORE (R-Ohio) is expected to put the Senate agreement — extending the debt ceiling to Feb. 7 and opening the government until Jan. 15 — on the floor Wednesday.

"The Speaker will bring that bill to the House floor," Rep. Kevin BradyKevin BradyEconomy grows at faster 2.9 percent rate in the third quarter Economy grows at faster 2.9 percent rate Green energy handouts don’t belong in the tax code MORE (R-Texas) told Bloomberg television Wednesday morning.

The bill will allow President Obama to retain his power to use so-called extraordinary measures to preserve the ability of the government to pay its bills once it reaches the debt limit. The Treasury Department told Congress in May that the nation had hit the debt limit and it would be implementing thos measures. 

The situation looked bleak on Tuesday night after House Republicans failed to garner enough votes for their latest plan, throwing the negotiations back to the Senate, where progress had been made earlier this week. 

The pending deal also would create a budget conference designed to find replacement cuts for sequestration. The group of chosen members would have to report back by mid-December.

The credit rater Fitch said on Tuesday that the United States is on watch for a possible downgrade.

This posted was updated at 12:50 p.m.