- 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.