Relief Over Ukraine Yields Record All-Time High for S&P

US Secretary of State John Kerry hinted that Russia’s storming of the Crimean peninsula was so 19th century; Might it be the case that investors’ willingness to embrace new technology ranging from social media to electric cars is too 22nd century? Back-peddling on behalf of President Putin over the situation on the ground in the Ukraine has ushered in a wave of relief amongst investors. Volatility has dipped, yet remains elevated at 14.26 (-10.8%) while the S&P 500 index has jumped 1.3% or 25-points to 1871. That’s a sentence we hardly thought we’d write this week as a Russian military advance appeared to be building. Investors have clearly got an appetite for equities displaying strong momentum no matter whether geopolitical risks or fears for the health of the recovery stand in their path.

Industrial and financial companies are leading the pack with all sectors higher. The vigorous rebound for stocks is all the more intriguing given that Monday’s selling pressure really had little time to build, indicating that the rebound is hardly an overshoot. Maybe we really should be somewhere between the reaction to and the reality of the rising stock market.

Chart – S&P 500 Index defies geopolitical risk and surges to record peak

(click to enlarge)

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

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