Stocks rose on Wall Street on Tuesday, driven by technology companies, as investors welcomed hints that tensions over Russia’s military buildup on Ukraine’s border could be easing.

The S&P 500 gained 1.6%. The gain ended a three-day losing trend and nearly made up for all of the losses from the previous week. The Dow Jones Industrial Average gained 1.2%, while the Nasdaq Composite gained 2.5%.

Also Read| Trade Setup: Top 15 things to know before market opens on February 16, 2022

The S&P 500 increased by 69.40 points to 4,471.07. Approximately 80% of the equities on the benchmark index rose. Aside from technology equities, banks and others that rely on consumer spending also contributed to the market’s rise.

The Dow Jones Industrial Average increased by 422.67 points to 34,988.84, while the Nasdaq increased by 348.84 points to 14,139.76. Smaller company stocks outperformed the market as a whole. The Russell 2000 index increased by 55.67 points, or 2.8%, to 2,076.46.

Also Read| Trending Stocks: Vedant Fashions, Cipla, SpiceJet and others in news today

Bond yields have continued to rise. The 10-year Treasury yield increased to 2.05% from 1.99% late Monday. The increases aided banks, which rely on rising bond yields to levy higher interest rates on loans. JPMorgan Chase increased by 1.5%.

Treasury yields have been rising throughout 2022 as investors brace themselves for the Federal Reserve to begin hiking interest rates to combat inflation. The central bank is projected to begin hiking rates in March, with a 61% possibility of the initial boost being half a percentage point, which is double the traditional move.

Also Read| Stocks that should be on your watchlist on Wednesday, February 16, 2022

U.S. benchmark crude oil prices slumped 3.6%. Oil prices have been volatile amid tensions over Russia potentially invading neighbouring Ukraine. Russia is a major energy producer and military action that disrupts supplies could jolt markets and global industries.

European markets, which have been sensitive to tensions between Russia and Ukraine, recovered some of their losses on Tuesday after Russia announced the withdrawal of some troops; however, observers noted that the recovery belied some scepticism.

Also Read| Fuel prices: Petrol priced at Rs 95.41, diesel Rs 86.67 in Delhi on February 16, 2022

Concerns on Wall Street about a potential confrontation were added to a lengthy list of risks to the global financial markets and economy, including the impact of continually rising prices on businesses and consumers.

Investors are also looking forward to the newest wave of corporate earnings, which include DoorDash on Wednesday and Walmart on Thursday.