New York CNN Business  — 

Wall Street’s Russia-Ukraine fears eased Tuesday morning after Russia announced it is withdrawing some troops following the completion of recent drills near Ukraine.

The Dow (INDU) jumped 422 points, or 1.2%. The S&P 500 (SPX) surged 1.5% and the Nasdaq (COMP) was 2.5% higher.

Investors have been concerned that an armed Russian conflict with Ukraine could badly damage the global economy. A war could send prices surging in regions that have already been struggling with rapidly rising inflation, especially as energy supplies could be disrupted in the middle of a conflict. Russia is a major exporter of oil and particularly natural gas.

US oil futures tumbled 3.7% to just under $92 a barrel. That’s despite the fact that Russia stressed Tuesday that major military exercises would continue.

The market reaction to signs of potential de-escalation is the latest example of investors hanging on nearly every headline emerging from the crisis.

The Dow and S&P 500 have declined three days in a row, including a drop on Monday that came after the State Department announced the closure of the US embassy in Kyiv.

US oil prices jumped above $95 a barrel Monday for the first time since 2014 on concerns about the Russia-Ukraine conflict.