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Investing.com — U.S. stock markets opened markedly higher on Tuesday, in relief at an apparent de-escalation of Russian military activity on the border with Ukraine.
Russia’s Defense Ministry had earlier said that some of the troops who have been taking place in large-scale military exercises will now return to their bases, a day after President Vladimir Putin and his Foreign Minister Sergey Lavrov signalled their openness to further diplomatic engagement.
The relief on the geopolitical shock outweighed the disappointment at another shockingly high U.S. producer price inflation report, which will only increase the likelihood of an aggressive tightening of monetary policy. Producer prices rose by 1.0% in January, twice as much as expected, and December’s figure was also revised up to 0.4% from 0.3%.
By 9.35 AM ET (1435 GMT), the Dow Jones Industrial Average was up 401 points, or 1.2%, at 34,968 points. The S&P 500 was up 1.3% and the NASDAQ Composite was up 1.7%.
