US stocks soared on Tuesday as fears of confrontation between Russia and Ukraine subsided. The S&P 500 jumped the most this year to reach a record high after Russian President Vladimir Putin said there he saw no need to use armed forces in Crimea for the moment. Following this news, investors were confident enough to invest in equities rather than traditional safe-haven assets. Also, gains from Walt Disney following a new deal with Dish Network helped the broader rally.AMAZON.COM INC (AMZN): Free Stock Analysis ReportBANK OF AMER CP (BAC): Free Stock Analysis ReportCITIGROUP INC (C): Free Stock Analysis ReportCOMCAST CORP A (CMCSA): Free Stock Analysis ReportDISNEY WALT (DIS): Free Stock Analysis ReportDISH NETWORK CP (DISH): Free Stock Analysis ReportTWENTY-FST CF-A (FOXA): Free Stock Analysis ReportHOME DEPOT (HD): Free Stock Analysis ReportJOHNSON & JOHNS (JNJ): Free Stock Analysis ReportJPMORGAN CHASE (JPM): Free Stock Analysis ReportMCDONALDS CORP (MCD): Free Stock Analysis ReportMERCK & CO INC (MRK): Free Stock Analysis ReportPFIZER INC (PFE): Free Stock Analysis ReportWELLS FARGO-NEW (WFC): Free Stock Analysis ReportTo read this article on Zacks.com click here.
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The Dow Jones Industrial Average (DJI) gained 1.4% to close Tuesday's trading session at 16,395.88. The Standard & Poor 500 (S&P 500) surged 1.5% to finish at 1,873.91. The tech-laden Nasdaq Composite Index advanced 1.8% to 4,351.97. The fear-gauge CBOE Volatility Index (VIX) plunged 11.9% to settle at 14.10. Total volume on the New York Stock Exchange was 3.7 billion shares. Declining stocks were outnumbered by advancing stocks on the NYSE. For 17% stocks that declined, 81% advanced.
Benchmarks bounced back from yesterday's hefty selloff following reports that the Russian President has ordered his troops to return to their bases. These troops were engaged in military exercises close to Russia's border with Ukraine. Investors welcomed Putin's comments and moved to invest in equities. On Monday, escalating political tension between Russia and Ukraine had compelled investors to move out from equities to risk-averse asset classes.
Markets reacted positively to these developments and the S&P 500 created an intraday record before closing on a new high. The Nasdaq touched a 14-year high.
Coming to the domestic front, there wasn't any economic data for the investors to cheer about. However, a new deal lifted investor sentiment. The Walt Disney Company (NYSE: DIS ), one of the major components of the Dow, saw its shares move up 2.8% to $81.71 after it reached a deal with the number two satellite TV provider, Dish Network Corp. (NASDAQ: DISH ). Dish Network will carry out live streaming of Disney-owned networks like ABC and ESPN on a variety of internet connected devices. Dish Network's shares also rose 1.2% to $59.56.
The Consumer Discret Select Sector SPDR (XLY) gained 1.3%. Major stocks from the sector such as Comcast Corporation (NASDAQ: CMCSA ), Amazon.com Inc. (NASDAQ: AMZN ), The Home Depot, Inc. (NYSE: HD ), McDonald's Corp. (NYSE: MCD ) and Twenty-First Century Fox, Inc. (NASDAQ: FOXA ) climbed 0.7%, 1.2%, 1.1%, 0.7% and 2.2%, respectively.
All the ten sectors of the S&P 500 ended in green. The Financial Select Sector SPDR (XLF) led the gains as the sector rose 2%. Top holdings from the sector such as Wells Fargo & Company (NYSE: WFC ), JPMorgan Chase & Co. (NYSE: JPM ), Berkshire Hathaway Inc. (NYSE:BRK-B), Bank of America Corporation (NYSE: BAC ) and Citigroup Inc. (NYSE: C ) increased 1.3%, 1.9%, 2.2%, 2.6% and 2.6%, respectively.
The Health Care sector closely followed the Financials sector. The Health Care Select Sector SPDR (XLV) gained 1.9%. Key stocks from the sector such as Johnson & Johnson (NYSE: JNJ ), Pfizer Inc. (NYSE: PFE ), Merck & Co. Inc. (NYSE: MRK ), Gilead Sciences Inc. (NASDAQ: GILD ) and Amgen Inc. (NASDAQ: AMGN ) soared 1.9%, 2.2%, 1.1%, 1.8% and 1.9%, respectively.