Stocks Respond Well to Possible Debt Deal

Dow up more than 300 points

Stocks were higher in afternoon trading Friday, adding to the previous day's gains as Wall Street was hopeful that debt-ceiling negotiations in Washington were progressing.

The Dow Jones industrial average was up 0.6% and the Standard & Poor's 500 index gained 0.5%. The Nasdaq composite index added 0.8%.

Thursday, the Dow soared more than 300 points, breaking a three-week funk in stocks.The gains came after Republican leaders said they would vote to extend the government's borrowing authority for six weeks. A spokesman for President Obama said he would "likely" sign a bill to increase the nation's ability to borrow money.