|S&P 500 touches record high
Relieved investors sent US stocks sharply higher Tuesday after Russia pulled troops from a planned exercise back from the border of Ukraine.
The rally pushed the Standard & Poor's 500 index to an all-time high, erasing steep losses from Monday.
The S&P 500 climbed 28.18 points, or 1.53 percent, to close at 1,873.91. It was the biggest gain for the benchmark index since October. The Dow Jones industrial average was up by 227.85 points, or 1.41 percent, to 16,395.88. The Nasdaq composite gained 74.67 points, or 1.75 percent, to 4,351.97, AP reports.
As investors moved back to riskier assets, prices fell for safe-play investments like bonds and gold. Oil prices also fell as the immediate threat of economic sanctions on Russia, a major oil exporter, eased. Traders had also been worried about transportation disruptions in the Black Sea, a major transit point for oil. The yield on the 10-year Treasury note rose to 2.68 percent from 2.60 percent late Monday.
In another sign of a greater appetite for risk, the Russell 2000 index of small-company stocks set another all-time high after posting the biggest percentage gains of the major US stock indexes. The Russell jumped 32.29 points, or 2.7 percent, to 1,208.65. It is now up almost 3.9 percent this year.
The two-day rout and rally was just the latest twist in a volatile year for stocks, which fell almost 6 percent just last month and have since recovered to set all-time highs in recent days.
Stock markets in Europe, including Moscow, and Asia recouped much of Monday's losses. Indexes in France and Germany each rose 2.5 percent, and the FTSE 100 in Britain rallied 1.7 percent.
The gains were extraordinarily broad. Five stocks were up for every one that fell on the New York Stock Exchange. All 10 industry sectors in the S&P 500 average gained.