A deal on the debt ceiling in sight?

Members of the Senate Democratic caucus board buses to take them to the White House for a meeting with U.S. President Barack Obama on the government shutdown and debt limit increase October 10, 2013 in Washington, DC. 

Stock prices surged Thursday as news broke that power players in Washington might be able to avoid a default and raise the debt ceiling by next week.

Both the Obama administration and House Republicans are sending signals that a deal could be close on temporarily raising the debt limit. The president and Republicans met Thursday in discussions that stretched well into the night. Republicans are offering a plan to raise the debt ceiling enough to take care of government borrowing through late November. In exchange, they're asking for broad talks about budget cuts, and in that process, they're hoping to come to an agreement on how to reopen the government.

Also notable is that Obamacare appears to be off the table for the first time in recent weeks. While there are still a number of Republicans who want to continue fighting the health care law, the party leadership recognizes it's not a battle the GOP is going to win. Instead, they're focused on other conservative priorities like trimming the entitlement budget.

About the author

Mark Garrison is a reporter and substitute host for Marketplace, based in New York.

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