Stocks surged in early trading on Wall Street Tuesday as
diplomatic talks between Russia and Ukraine showed signs of progress. The S&P 500 rose 0.6% as of 11:19 am Eastern Time
Zone. The Dow Jones Industrial Average rose 219.07 points, or 0.63%, to
35,174.96. The Nasdaq rose 1.17% to 14,522.38. 

Technology and communications stocks supported the gains as
Apple rose 0.8% and Netflix rose 1%. Retailers and other companies that depend
on direct consumer spending also made solid gains.

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Smaller company stocks outperformed the broader market
which shows that investors were confident about the economy. The Russell 2000
climbed 1.3%.

The first face-to-face meeting in two weeks between
Russia and Ukraine started on Tuesday in Turkey. Turkey’s foreign minister says
Russian and Ukrainian negotiators have reached “a consensus and common
understanding” on some issues. The Russian military said it would
“fundamentally” cut back operations near the Ukrainian capital and a
northern city, as talks brought a possible end to the war into focus.

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Russia’s invasion of Ukraine has been disturbing markets
and adding to persistent concerns about rising inflation and global economic
growth. Investors were

Russia’s invasion of Ukraine has been unsettling markets
and adding to lingering concerns about persistently rising inflation and global
economic growth. When the conflict began a month ago, investors were already
assessing the duration and impact of rising inflation on businesses and
consumers.

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Energy prices have been highly volatile as the conflict
continues, but have been reducing over the last few days. Additionally,
pressure on prices is being relieved as Chinese authorities lock down Shanghai
because of a spike in COVID-19 cases, which could harm global oil demand.

US crude oil prices slipped 5% and Brent crude, the
international oil benchmark, fell 4.8%. Prices are still high more than 30% globally
and up more than 50% as of just last week.

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Easing oil prices pulled down energy companies, which
posted some of the biggest losses on Tuesday. Hess plunged 2.7%.

Markets in Europe were higher and Asian markets closed
mixed overnight.

Bond yields have been increasing as Wall Street prepares
for higher Fed rates after years of ultra-low interest policies from central
banks worldwide. The yield on the 10-year Treasury note fell to 2.40% from
2.47% late Tuesday.

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Wall Street is also studying the latest economic reports
this week. US consumer confidence made a strong comeback in March, according to
a report from business research group The Conference Board.