The Dow Jones industrial average rose 111 points, or 0.7 percent, to close at 15,237 Friday. The Dow surged 323 points on Thursday as investors hoped that signs of a compromise from House Republicans would defuse the standoff.
The Standard & Poor's 500 index rose 10 points, or 0.6 percent, to 1,703. The Nasdaq composite rose 31 points, 0.8 percent, at 3,791.
The price of gold closed at a three-month low as investors ditched safe-play assets in light of the progress toward reaching a debt deal.
Three stocks rose for every one that fell on the New York Stock Exchange.