U.S. stock futures surged on Tuesday as a Russian news agency reported that some troops were returning to base in a sign of decreasing tensions with Ukraine.
- Futures on the Dow Jones Industrial Average YM00, +1.13% gained 310 points, or 0.9%, to 34781
- Futures on the S&P 500 ES00, +1.47% rose 1.3%, or 56 points, to 4450
- Futures on the Nasdaq 100 NQ00, +2.05% gained 1.8%, or 261 points, to 14514
On Monday, the Dow Jones Industrial Average DJIA, -0.49% fell 172 points, or 0.5%, to 34566, the S&P 500 SPX, -0.38% dropped 17 points, or 0.4%, to 4402 and the Nasdaq Composite COMP, -0.00% fell fractionally to end at 13791.
What’s driving markets
Interfax reported the Russian Defense Ministry as saying that units of the southern and western districts are returning to base after completing their mission.
The troop withdrawal was reported to be roughly 10,000 of the 130,000 massed on Ukraine’s border, as German Chancellor Olaf Scholz arrives in Russia for talks with Russian President Vladimir Putin.
Markets have veered on reports over the Russia-Ukraine conflict.
The “re-pricing of central bank expectations is the key driver of a good deal of the recent volatility,” said Michael Strobaek, global chief investment officer of Credit Suisse. “The geopolitical tensions, however, namely the escalation of tensions between NATO and Ukraine on the one side and Russia on the other, are less predictable, complicated and more difficult to price for markets.”
An armed conflict could lead global stock markets to drop more than 10%, he said.
Besides headlines involving Russia and Ukraine, there’s also data on producer prices, as well as the Empire State manufacturing index, due for release. Earnings season rolls on with releases due from companies including ViacomCBS VIAC, -2.69% and Marriott International MAR, +0.85%