Futures surged across the board Monday, after top U.S. lawmakers sealed a deal to raise the debt ceiling one day ahead of a deadline for a potential default.
Dow Jones futures were more than 100 points higher in early morning trading.
President Obama announced a compromise that would shrink the deficit by around $2.4 trillion in the next 10 years.
The Senate and the House of Representatives are due to vote on Monday and the bill could be signed by Obama in time to avoid a technical default by the US on August 2, when the Treasury runs out of funds.
The dollar enjoyed a relief rallyagainst the yen and the Swiss franc but some analysts said the move is likely to be short-lived as the deal struck by members of Congress does not necessarily remove the threat that the U.S. triple-A credit rating will be downgraded.
Oil climbed after the news of the deal, which some analysts said was the result of an improved demand outlook from the world's biggest economy.
Strategists have warned however that Wall Street's relief rally may be short-lived as the weakness of the US economy comes back to haunt investors.
