S&P, Russell 2000 rally to record highs as Ukraine fears ease, Dow +227


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.

Comments (3)
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    BABABABABAOOOOOOOYA!! You forgot the part asbout a massive short squeeze and melt up!
    4 Mar 2014, 04:19 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13488) | Send Message
     
    The market is acting like the crisis is completely over. Although the worst seems not to be happening, there is plenty of gambit to play and plenty of opportunities for dangerous screw ups.

     

    A gas/potash hedge position wouldn't be a bad idea.

     

    The fact Obama just pushed a lame duck faux budget doesn't raise my confidence level that we can do anything but economically threaten Russia. Rather than blowing money preventing the normal operation of capitalism we should save enough so we can spend when an actual crisis arises like the one which may unfold in Eastern Europe.
    4 Mar 2014, 10:49 PM Reply Like
  • Petrarch
    , contributor
    Comments (1149) | Send Message
     
    Get a grip.
    From an investing perspective
    Ukraine is irrelevant
    Russia is a sideshow
    Ukraine is a sideshow of a sideshow
    Unless there is a shooting war in Europe and even then it may not matter so much. The GDP of Ukraine is basically the same as the GDP of Dallas Fort Worth. The total stock market cap is less than Disney.
    Russia is a slow growing irrelevancy.
    P
    5 Mar 2014, 01:42 AM Reply Like
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