U.S. stocks jumped on Tuesday, with the Dow and S&P 500 bouncing back after their worst hit in a month, as concerns over the Ukraine ebbed.
"Investors do seemed to have been trained in recent years, as soon as it looks like geopolitical crisis has been averted, to buy. We saw that in Egypt and we saw that in Syria," said Jeffrey Kleintop, chief market strategist at LPL Financial.
"Heading into the week, there was a lot of anxiety out there about how it might escalate, between Russia and the West, and anytime you have superpowers talking like that, it's going to scare the markets. But we knew in the end, cooler heads would prevail," said Joseph Tanious, global market strategist at J.P. Morgan Asset Management. .
But the situation, while much improved, was by no means resolved, and "investor sentiment can turn on a dime," Tanious added.
Reported comments by Vladimir Putin that the Russian president had called troops taking part in military exercises close to Russia's border with the Ukraine back to their bases helped calm worries of an immediate escalation of military force.
In Kiev, U.S. Secretary of State John Kerry on Tuesday told a televised news conference that the United States "extended its deepest condolences" to Ukrainians who took to the streets to demand freedom and were met by sniper fire. "We condemn the Russian Federation's act of aggression," Kerry said.
(Read more: Ukraine crisis: Latest news and market reaction)
The geopolitical friction spurred a run by investors to perceived safe havens on Monday, with gold, the U.S. dollar and Treasury prices rallying. On Tuesday, that trend reversed, although volatility was expected to remain in play as the situation in the Ukraine continues to play out.