Investing.com - U.S. stock futures pointed to a sharply higher open on Tuesday, as market sentiment improved as concerns over geopolitical tensions between Russia and Ukraine began to subside.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a 1.02% jump, S&P 500 futures signaled a 1.04% climb, while the Nasdaq 100 futures indicated a 1.14% rally.
Market sentiment improved after President Putin said a Russian military deployment is not needed now but the “possibility” still remains, and added that if Russia takes action it will be legitimate.
Concerns over the crisis in Ukraine eased earlier Tuesday after the Russian president ordered troops engaged in military exercises close to Ukraine’s borders to return to base.
But investors remained cautious after President Barack Obama said the U.S. was considering economic sanctions to "isolate Russia" following its military incursion into Ukraine’s Crimea region over the weekend.
The auto sector was likely to be active, following reports Mercedes-Benz, the top-selling luxury-auto brand in the U.S. last year, extended its 2014 lead with record February sales, thanks to the strength of new models.
General Motors Co., up 0.11% in after-hour trade, said its Cadillac reported a 2.9% drop in sales to 13,437 units, as deliveries fell for every model except the SRX crossover, which rose 23%. Sales of the ATS sedan, winner of last year’s North American Car of the Year award, declined 28% to 2,427.
Elsewhere, Detroit agreed to pay $77.6 million to UBS AG and Bank of America's Merrill Lunch unit to end interest-rate swaps that have cost taxpayers more than $200 million since 2009, according to a court filing. Shares in Bank of America rose 0.25% in pre-market trade.
Sprint was also slated to be in the spotlight, as shares retreated 0.45% in late trading as another senior executive was said to be leaving the U.S. wireless company. Several key leaders have already exited the form since it was acquired last year by Japan's SoftBank.
Other stocks likely to be in focus included AutoZone and Insys Therapeutics, scheduled to report quarterly earnings later in the day.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 jumped 1.11%, France’s CAC 40 rallied 1.34%, Germany's DAX advanced 1.02%, while Britain's FTSE 100 climbed 1.01%.
During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.70%, while Japan’s Nikkei 225 Index gained 0.47%.