NEW YORK, March 4 (Xinhua) -- U.S. stocks bounced back sharply Tuesday from Monday's heavy selling, with the S&P 500 setting another record high, as Ukraine tensions subsided.
The Dow Jones Industrial Average surged 227.73 points, or 1.41 percent, to 16,395.76. The S&P 500 jumped 28.18 points, or 1.53 percent, to 1,873.91, a fresh record closing high. The Nasdaq Composite Index soared 74.67 points, or 1.75 percent, to 4,351.97.
The broader S&P 500 also set a new all-time intraday high of 1, 876.23.
On the previous trading day, U.S. stocks saw selloff with global stocks on intensifying situation in Ukraine as U.S. President Barack Obama warned Monday that his administration is examining "a whole series of" economic and diplomatic steps to " isolate" Russia over its refusal to withdraw military forces from the Ukrainian republic of Crimea.
On Tuesday, the Kremlin said Russian President Vladimir Putin ordered forces engaged in military drills to return to their permanent bases.
Global stocks interpreted the move as a cheerful sign and reacted positively. Asian shares ended mostly higher overnight, while European shares also posted a sharp relief rally Tuesday, almost wiping out all losses Monday.
In response to the positive sign, Wall Street followed suit to leap, as investors took Monday's dip as a buying opportunity, still optimistic with the U.S. equity market.
Adding to bullish sentiment in the market, Jeremy Siegel, professor of Finance at the Wharton School of the University of Pennsylvania, predicted in an interview with CNBC Tuesday that the Dow will rise to 18,000 points, representing roughly a 10 percent gain compared with its current level, citing growing corporate earnings.
"It could get there by the year-end, it could get there sooner, it might be later," the professor said, adding his fair market value estimate for the S&P 500 is 2,000.
With no major economic data due out in the day, investor are looking ahead to the closely-watched nonfarm payrolls report for February scheduled for release on Friday by the U.S. Labor Department.