- Putin sees no need to send troops to Ukraine
- S&P eyeing another record high
- Industrials, financials recover
Dow Jones: 1.18%
S&P 500: 1.24%
Easing concerns over tensions between Russia and Ukraine sparked a strong surge in US stocks on Tuesday morning as Wall Street erased the previous day's losses.
Sentiment recovered today after Russian President Vladimir Putin said he saw no need yet to send troops into Ukraine, helping the S&P 500
to rebound from its worst one-day loss in a month.
In fact, the US benchmark index was trading 1.2% higher early on at around 1,869, above the record closing high of 1,859.45 it reached on Friday.
Heavyweight blue chips in the industrial and financial sectors were helping markets to recover after the opening bell after being hit by a reduction in risk appetite on Monday.
Speaking for the first time since the ousting of former Ukraine President Viktor Yanukovych last month, Putin said that the situation in the Crimea had "dissipated" and he would only send soldiers to Ukraine in an extreme case.
He told reporters today that Yanukovych had asked Russia to send forces into Ukraine to protect Russian citizens within the country.
Secretary of State John Kerry was due to arrive today in Kiev as the US seeks diplomacy in the region.
"While traders will continue to keep an eye on events as they develop in the Ukraine, some more attention can now be paid to the markets themselves. Yesterday there was a number of economic data releases which were pretty much understandably overshadowed by the events in the Ukraine," said Market Analyst Craig Erlam from Alpari
No major economic data is due for release today in the States, though things are likely to pick on macro-wise in the coming days as investors await ISM services data, the Federal Reserve's Beige Book and the all-important non-farm payrolls report.
Blue chips recover, Facebook jumps
Industrial stocks such as Boeing and General Electric bounced this morning after a weak performance the previous session, along with financial giant Citigroup, Bank of America and Goldman Sachs.
Facebook rallied on reports the social-network site owner may buy Titan Aerospace for $60m, makers of solar-powered, high-altitude drones that can stay aloft for up to five years at a time.
Abercrombie & Fitch gained after Credit Suisse raised its recommendation on the company to 'outperform' from 'neutral', saying a more competitive pricing strategy and tighter cost controls will help bolster earnings.
Lorillard was higher on speculation Reynolds American will make a bid to buy the third-largest seller of cigarettes in the US.
SunEdison rose after Morgan Stanley raised the solar-energy technology developer to 'overweight', meaning investors should buy the shares.
Molycorp dropped as the owner of the largest rare-earth deposits outside of China reported fourth quarter revenue that fell short of analysts' estimates.
Electronics retailer Radioshack plummeted after missing analysts estimates with its quarterly results and saying that it will close a fifth of its stores.