Washington dodges shutdown, but the clock is already ticking again

Washington has pulled itself back from the brink, passing a $1.2 trillion stop-gap deal that reopened most of the US government after days of disruption.

The relief is short-lived though, with Homeland Security funded for just two more weeks, guaranteeing another high-stakes fight over borders, immigration and spending before mid-February.

Markets firmed as the deal removed a short-term overhang - pushing the S&P 500 back toward record highs, but traders are already bracing for renewed volatility, awaiting the 2-week deadline.