- US stocks rallied Tuesday after Russia said it pulled some troops back from the Ukraine border.
- Oil prices retreated from eight-year highs and gold slipped.
- The 10-year Treasury yield rose to 2.036% from Monday's 1.995%.
US stocks rallied on Tuesday on hopes that geopolitical tensions are cooling after Russia pulled back some of its troops from the Ukraine border.
The announcement from the Russian defense ministry came after weeks of heightened tensions between Russia, Ukraine, and the West over fears that President Vladimir Putin would choose to invade.
The S&P 500 rose, lifted by energy stocks, after falling for three straight sessions. The blue-chip Dow Jones Industrial Average and the technology-heavy Nasdaq Composite both climbed over 1%.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:
- S&P 500: 4,453.59, up 1.18%
- Dow Jones Industrial Average: 34,953.46, up 1.13% (387.29 points)
- Nasdaq Composite: 14,015.49, up 1.64%
US equities have been declining in recent days as investors kept track of the tensions in Eastern Europe. It's unclear how many troops Russia withdrew, but the signal was enough to flip the market back to "risk-on" mode.
Kremlin spokesperson Dmitry Peskov later confirmed the start of a withdrawal and slammed Western "hysteria" over the reality of an invasion.
"Any indication of thawing tensions between Russia and Ukraine is enough to spark a small rally in stocks," David Bahnsen, CIO at The Bahnsen Group, a wealth management firm, said in a note Tuesday. "The two equally powerful forces weighing on stocks right now that are exacerbating volatility include Russia/Ukraine tensions and Federal Reserve hawkishness."
The threat of Russia invading Ukraine sparked fears on Wall Street over the impact on global equities and the economy. On top of this, calls for the Fed to hike interest rates to stem inflation have contributed to market turbulence.
But JPMorgan said the bull market is "far from over." The bank believes a lot of bad news is already priced into the market, and any conflict between Russia and Ukraine would likely lead to a dovish reassessment by central banks.
The 10-year Treasury yield rose to 2.036% from Monday's 1.995%. Bond yields move inversely to prices.
Crude-oil prices have seen upward pressure in the past eight weeks amid increasing tensions between Russia, a major oil producer, and Ukraine, which is a key conduit for energy exports to Western Europe.
Oil prices retreated from their eight-year highs Monday. West Texas Intermediate crude slipped 3.34% to $92.27 per barrel. Brent crude, the international benchmark, slipped 2.97% at $93.61.
Gold, seen as a safe haven during times of wariness, fell 0.80% to $1,856.26 per ounce after hitting an eight-month high earlier on Tuesday.
Bitcoin rose 0.42% to $44,368.40.