New York Report: US stocks rise as tensions in Crimea ease
US STOCKS climbed yesterday, with the S&P 500 bouncing from its worst weekly drop in the past seven, as concerns eased over the situation in Crimea, while economic data indicated the economy was improving after a winter slowdown.
The 97 per cent vote in Crimea in favour of quitting Ukraine was condemned as illegal by Kiev and the West, but the referendum passed without violence.
In response, the United States and European Union imposed personal sanctions on Russian and Crimean officials involved in the seizure of Crimea. Russian President Vladimir Putin signed a decree recognising the region as a sovereign state.
The geopolitical tension had weighed on equities last week, with the S&P 500 falling two per cent and the CBOE Volatility index jumping to its highest since early February on Friday.
Economically-sensitive sectors led the way higher yesterday, with both technology and industrials up 1.3 per cent. Google gained 1.6 per cent to $1,192.10 while General Electric rose 1.3 per cent to $25.43.
The Dow Jones industrial average rose 181.55 points or 1.13 per cent, to 16,247.22, the S&P 500 gained 17.7 points or 0.96 per cent, to 1,858.83 and the Nasdaq Composite added 34.552 points or 0.81 per cent, to 4,279.949.
The US Federal Reserve’s massive stimulus has helped keep a floor under equity prices, and market participants are looking ahead to a two-day meeting of the Fed’s policy-setting committee, which begins today.