TOCKS rallied yesterday, with the S&P 500 closing at a record as concerns about a confrontation between Russia and Ukraine eased, and the market recovered more than all of the previous session's hefty losses.
President Vladimir Putin delivered a robust defence of Russia’s actions in Crimea, saying he would use force in Ukraine only as a last resort.
His comments relieved investors’ worries that East-West tension over the former Soviet republic could lead to war.
The day’s gains followed Wall Street's worst day in a month on Monday, when investors sold stocks and other risky assets as tensions escalated between Ukraine and Russia. Global stocks rebounded yesterday while gold, the Japanese yen and Treasuries prices fell. Crude oil prices, up more than two per cent on Monday, reversed some of that session’s gain in yesterday’s trading.
The Dow Jones industrial average jumped 227.85 points or 1.41 per cent, to end at 16,395.88. The S&P 500 gained 28.18 points or 1.53 per cent, to finish at 1,873.91.
The Nasdaq Composite climbed 74.671 points or 1.75 per cent, to close at 4,351.972.
The S&P 500 ended at a record high for the second time since Friday, when the broad index finished February with a milestone. In yesterday’s session, industrials and financials ranked among the biggest gainers. The benchmark index is up 1.4 per cent for the year.
The Wilshire 5000 Index closed above 20,000 for the first time. The index has gained 193.55 per cent or $15.9 trillion from its low in March 2009, after the financial crisis.