Feb. 15 (UPI) — The Dow Jones Industrial Average posted gains for the first time in four sessions on Tuesday as markets reacted to news that tensions between Russia and Ukraine may be cooling.
The blue-chip Dow rose 422.67 points, or 1.22%, while the S&P 500 gained 1.58%, and the Nasdaq Composite rose 2.53%, spurred in part by Russia’s defense ministry on Tuesday announcing that some troops participating in war exercises would return to their bases.
West Texas Intermediate crude oil prices fell 3.76% from their highest price since 2014 to $91.87 per barrel while the 10-year treasury yield increased to 2.04% as the tensions appeared to ease.
Shares of ConocoPhillips fell 2.07% and Exxon Mobil dropped 1.24% amid falling oil prices.
Travel stocks were some of the highest risers Tuesday as American Airlines stock jumped 8.09% and Carnival Cruise Lines gained 6.7%.
Some technology stocks also saw gains as Tesla climbed 5.33%, Zoom rose 3.39% and Netflix rose 2.75%.
Fears over a possible Russian invasion of Ukraine had weighed on a market already preoccupied with concerns that the Federal Reserve could tighten its monetary policy more rapidly than expected to combat inflation, Sanders Morris Harris Chairman George Ball said in a note.
“If an armed conflict between Russia and Ukraine is somehow avoided, a short-lived relief rally is likely, but there are still too many worries on the horizon for any type of longer lasting upward move higher in stocks,” said Ball.
Tuesday also saw the producer price index, which measures final-demand goods and services rise 1% for January, double the Dow Jones estimate of 0.5%, continuing concerns about inflation.
The Federal Reserve is set to release minutes from its final meeting Wednesday which will be closely watched by investors.
“If the reveal is the Fed believes they’re behind the curve … that is interesting, and will have investors on their back foot. They’ll be thinking even more rate hikes and additional tightening,” said Michael Arone, chief investment strategist at State Street Global Advisors, according to CNBC.