### Markets Rebound Despite Escalating US-Russia Tensions

Financial markets exhibited remarkable resilience on Tuesday, largely ignoring rising tensions between Russia and the United States. Although the Dow Jones Industrial Average experienced a sharp initial drop, it concluded the day down by only 120 points, or 0.28%. The blue-chip index had plunged about 450 points shortly after the market opened, but quickly recovered. The S&P 500 and Nasdaq similarly bounced back from their early losses, finishing the day up by 0.4% and 1%, respectively.

This price movement occurred in the wake of a significant development: Moscow modified its nuclear doctrine following the Biden administration's recent decision to allow Ukraine to employ longer-range weapons against targets inside Russia. "Today is a reflection of concern that, after 1,000 days, the Russia-Ukraine conflict looks like it's getting hotter," stated Art Hogan, chief market strategist at B. Riley Wealth Management.

Initially, investors sought refuge in traditional safe havens like gold and US government debt. As a result, gold prices saw an uptick and US Treasury yields dipped. This flight to safety was prompted by Ukraine's use of US-manufactured ATACMS missiles to strike Russia's Bryansk region, marking a major escalation in the ongoing conflict.

The missile strike came just two days after President Joe Biden gave Ukraine the green light to use longer-range American weaponry inside Russian territory, effectively ending a months-long restriction designed to avoid a severe escalation of hostilities.

Interestingly, oil prices, which had spiked at the beginning of the Russia-Ukraine war in 2022, remained largely unchanged on Tuesday. "In our view, the underlying trends for the equity market remain positive, but this news provides an excuse for the market to give back some of its rally," explained Keith Lerner, chief market strategist at Truist Advisory Services.