Stocks rally as Ukraine fears ease

Major U.S. stock indexes closed up around 1% on Friday, buoyed by signs that tensions in Ukraine might be easing.

The Dow ended up 185.66 points, or 1.1%, to 16,553.93. The Standard & Poor’s 500 index rose 22.02 points, or 1.2%, to 1,931.59. Nasdaq rose 35.93 points, or 0.83%, to 4,370.90.

The rally on Wall Street contrasted with price declines in European and Asian stock markets.

Fear has been creeping into stock and bond markets around the world in recent weeks against a backdrop of escalating global conflicts.

News Friday of U.S. fighter jets dropping bombs in Iraq and the end of a threeday cease-fire in Gaza weighed further on European and Asian markets.

The declines there capped broad losses for the week, including a 5% drop in Japan’s major stock index.

As anxieties have risen in recent days, money has been f lowing from around the world into U.S. Treasuries, the perennial haven for spooked investors.

U.S. stock markets bucked the trend Friday as investors snapped up shares that had been beaten down in recent days. The buying surge started late in the day on reports that Russia had ended military exercises near Ukraine.

The Dow Jones industrial average surged 1.1%, its biggest gain since March. The index remains 3.4% below its record high set July 16.

Jim Paulsen, chief investment strategist at Wells Capital Management, said he wasn’t surprised by the Wall Street rally.

“The U.S. economy will grow at 3% or 4% for the rest of the year,” Paulsen said. “Are geopolitical risks really going to have an economic impact?”

Benchmark U.S. crude oil rose 31 cents to close at $97.65 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 42 cents to close at $105.02 on the ICE Futures exchange.

The yield on the 10-year Treasury note edged up to 2.42% from 2.41% late Thursday.

In corporate news, shares of retailer Lululemon Athletica rose $1.08, or 3%, to $40.11.