NEW YORK (AP) — U.S. stock futures are jumping after President Barack Obama and Congressional leaders signaled they have a deal to raise the nation's borrowing limit ahead of Tuesday's deadline.

About an hour and a half before the market opens, Dow futures are up 166 points, or 1.4 percent, to 12,255. Major stock indexes in Asia and Europe are also up sharply.

The debt agreement would cut at least $2.4 trillion in federal spending over 10 years. It is expected to pass the House and Senate on Monday. If a bill is not signed by Tuesday, the federal government will be unable to pay all of its bills.

The S&P 500 is up 17 points, or 1.3 percent, to 1,305. Nasdaq 100 futures are up 30, or 1.2 percent, to 2,388.