NEW PROPOSAL: Markets jumped in response after President Barack Obama praised a proposal by six senators that would cut debt by $3.7 trillion over the next decade and raise the country's $14.3 trillion debt ceiling. The budget deadlock in Washington had been weighing on markets this month.
BIG BLUE: Information technology stocks led industry groups higher after IBM's results beat analysts' estimates. Corporate software spending held steady during the quarter.
INDEXES: The Dow had its largest one-day jump this year, rising 202 points to 12,587. The S&P 500 rose 21 points to 1,326. The Nasdaq rose 61 points to 2,826.