Stocks surge as markets take Crimea vote in stride

Investors brush off Crimea’s widely expected vote to secede from Ukraine - a peculiar complacency, considering the potential geopolitical ripples - to push stocks broadly higher in a short-covering rally after the weekend passed without military action or any strong economic action from the U.S. or western Europe.

Today's gains followed last week's 2% drop in the S&P 500 and may have provided an opportunity for bulls who have been looking for pullbacks.

NYSE Composite trading volume totaled ~2.7B shares, among the lowest full-trading days of the year; amid the weak volume, the VIX fell nearly 13%.

Action was supported throughout the day by leadership from techs, industrials and financials, some of its most heavily-weighted sectors, which all rose more than 1%; utilities trailed all other sectors, but still rose a respectable 0.6%.

Meanwhile, U.S. industrial production rose more than expected last month, supporting the notion that U.S. economic growth is still on track and that earlier weakness had more to do with bad weather than a lack of underlying activity.

Typical safe havens such as bonds and gold also showed little concern over the Crimea results: Selling in bonds pushed the yield on the 10-year Treasury up 3.5 bps to 2.69%, and gold futures fell 0.5% to $1,372/oz. after settling Friday at a six-month high.

Comments (4)
  • minecanary
    , contributor
    Comments (1276) | Send Message
    Hmmm, so investors(?) brushed off China defaults, Crimea, Italian banks, and almost every possible negative indicator from the U.S. economy. An idiot could see the Fed has decided it's easier to buy the index and smash gold then continue QE.
    Here comes the bail-ins.
    17 Mar 2014, 07:31 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
    Sorry Ukraine...we "meant" how we "felt" but didn't "feel" how we "loved."
    17 Mar 2014, 07:45 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4746) | Send Message
    Fed will be so dovish tomorrow it will make us all vomit...and then rich...
    17 Mar 2014, 08:36 PM Reply Like
  • cindstamp
    , contributor
    Comments (6) | Send Message
    .....and Obama walks away from another issue. Bet he will make another speech
    so that the sound of his own voice will make him feel good.
    18 Mar 2014, 09:17 AM Reply Like
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