Easing tensions in Ukraine fueled a rally in stocks that wiped out yesterday's losses, pushing the S&P 500 index to a record closing high and adding nearly 230 points to the Dow.
In addition, the Nasdaq scored its best gain in four months, and the Russell 2000 index of smallcaps also posted a record closing high.
"Monday's drop was a bit of an overreaction and now stocks are showing their resiliency," says the CIO at Palisade Capital Management.
Health care and financials led sector gains that included all 10 of the S&P's major industry groups.
Volatility protection was in strong demand yesterday, but the VIX returned to last week's levels.
Safe-haven areas that were in such demand yesterday fell today: Treasury prices rose, pushing the 10-year yield up 8 bps at 2.68%, gold futures dropped 0.9% at $1,337.90/oz. and WTI crude oil slid 1.5% at $103.33/bbl.