Other News: Airline stocks, which benefit from lower fuel costs, were also sharply higher. Hong Kong-listed Air China climbed 4.4 percent.

Other News: Airline stocks, which benefit from lower fuel costs, were also sharply higher. Hong Kong-listed Air China climbed 4.4 percent. South Korea's Asiana Airlines climbed 3.2 percent, and Taiwan's EVA Airways Corp. soared 6.4 percent. Crude has fallen about 30 percent since reaching nearly $115 in May.

Worries about the U.S. economic recovery have been building since the government said that economic growth was far weaker in the first half of 2011 than economists expected. In a reversal of earlier forecasts, economists now believe there is a greater chance of another U.S. recession because the economy grew much more slowly in the first half of 2011 than previously thought.

The manufacturing and services industries barely grew in July. The unemployment rate remains above 9 percent, despite the 154,000 jobs added in the private sector in July. Economies across the globe are also struggling.

Worries are growing that Spain or Italy could become the next European country to be unable to repay its debt. High inflation in less-developed countries, which have been the world's main economic engine through the recovery, is another concern. China's inflation rose to a 37-month high in July.

Benchmark oil for September delivery was up $2.06 to $81.36 a barrel in electronic trading on the New York Mercantile Exchange. In London, Brent crude was up $2.79 to $105.39 per barrel on the ICE Futures exchange. The dollar sank to 76.87 yen from 77.01 yen late Tuesday in New York. The euro strengthened to $1.4356 from $1.4222.

Mechanics of the Debt Deal

·         Immediately enacted 10-year discretionary spending caps generating nearly $1 trillion in deficit reduction; balanced between defense and non-defense spending.

·         President authorized to increase the debt limit by at least $2.1 trillion, eliminating the need for further increases until 2013.

·         Bipartisan committee process tasked with identifying an additional $1.5 trillion in deficit reduction, including from entitlement and tax reform. Committee is required to report legislation by November 23, 2011, which receives fast-track protections. Congress is required to vote on Committee recommendations by December 23, 2011.

·         Enforcement mechanism established to force all parties – Republican and Democrat – to agree to balanced deficit reduction. If Committee fails, enforcement mechanism will trigger spending reductions beginning in 2013 – split 50/50 between domestic and defense spending. Enforcement protects Social Security, Medicare beneficiaries, and low-income programs from any cuts.