Investors are expecting the deal to pass Congress as early as Monday. The agreement would raise the U.S. debt limit by $2.1 trillion. It would also cut at least $2.4 trillion in spending over 10 years.
It's not clear whether the deal would prevent a downgrade to U.S. debt.
The Standard and Poor's 500 index is up 12 points, or 0.9 percent, to 1,304. The Nasdaq composite is up 32, or 1.2 percent, to 2,788.