Markets jump, then fall, after deal struck on debt limit

Stocks surged early Monday morning on news of a debt limit deal, only to quickly fall into negative territory following a disappointing economic report.

Immediately after American markets opened, the three major stock indices all jumped over one percent. The NASDAQ led the way in early trading, climbing 1.3 percent in early trading. That was followed by the Dow Jones Industrial Average -- up 1.1 percent -- and the S&P 500, which grew by 0.9 percent.

However, less than an hour into the day's trading, all three indices were back in negative territory, after a new economic report found that U.S. manufacturing activity had reached its lowest level in two years. The Institute for Supply Management's disappointing report immediately took any air out of the fledgling market rally.

The opening of American markets come after Asian stocks largely rallied as news of a debt deal became public. Major Asian stock indices were up over one percent on average.

As lawmakers haggled and publicly fought over the debt limit as time ticked away, markets have responded not by any single major event, but with a steady sell off as investors shied away from stocks and sought safer investments like gold. By the end of the previous week, the Dow had lost 4.2 percent, marking the worst week for stocks in the last year.

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