Investing.com - U.S. stocks shot up on Tuesday after Russia took steps to ease its standoff in Ukraine, which sparked a relief rally on Wall Street.
At the close of U.S. trading, the Dow Jones Industrial Average rose 1.41%, the S&P 500 index rose 1.53%, while the Nasdaq Composite index rose 1.75%.
Stocks rallied after Russian President Putin said Moscow reserved the right to use force in Ukraine’s Crimea region in the event of “lawlessness” but added that such a move would be a last resort, which left investors concluding that the chances of military conflict in the area are falling.
Markets also applauded a Russian order for troops engaged in military exercises close to Ukraine’s borders to return to their bases.
While Russian forces still maintain military presence in Crimea, stocks rose on expectations for geopolitical concerns involving Ukraine will dissipate or at least not escalate further.
Elsewhere, investors shrugged off President Barack Obama's $3.9 trillion budget sent to Congress and the fiscal debates the spending plan may spark over eliminating tax breaks and spending.
Leading Dow Jones Industrial Average performers included American Express, up 2.91%, Walt Disney, up 2.78%, and Goldman Sachs, up 2.41%.
The Dow Jones Industrial Average's worst performers included 3M, up 0.36%, Chevron, up 0.40%, and Intel, up 0.43%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 2.68%, France's CAC 40 rose 2.45%, while Germany's DAX 30 rose 2.43%. Meanwhile, in the U.K. the FTSE 100 climbed 1.72%.
On Wednesday, the U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. Meanwhile, the ISM is to publish a report service sector activity.