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New York - US stocks rose for a second straight day on Tuesday, with the S&P moving within 1% of record levels after comments from Russian President Vladimir Putin eased concerns that tensions over Ukraine might escalate.
Gains were broad, with all 10 primary S&P 500 sectors higher on the day. Groups tied to the pace of economic growth, including materials, were among the day's biggest advancers, while a rally in Microsoft boosted tech shares more than 1%.
Shares of Microsoft rose 4.1% to $39.61 as the S&P 500's biggest percentage advancer. It was the biggest daily advance for the software giant since November, and the move took the stock near $40 a share for the first time since July 2000. Late on Monday, a source familiar with the matter told Reuters that the company may unveil an iPad version of the company's Office software suite on March 27.
In an address to the Russian parliament, Putin said Russia didn't want Ukraine to be divided further, and that he did not want to seize more of the country after approving plans to make Crimea part of Russia following a disputed referendum.
Late on Monday, the United States and the European Union imposed personal sanctions on a handful of officials from Russia and Ukraine who were accused of involvement in Moscow's military seizure of the Black Sea peninsula.
"What had been going on in the Ukraine has been weighing on the minds of investors for a while, so it is a relief that we are apparently moving beyond this," said Joseph Tanious, global market strategist at JP Morgan Asset Management in New York.
"While from an economic standpoint the Ukraine doesn't have a major impact on the global economy, there were worries about more tension between Russia and western powers, and how far this kind of standoff could go."
The Dow Jones industrial average was up 0.59% at 16 342.97 points. The Standard & Poor's 500 Index was up 0.65% at 1 ,870.82 points, while the Nasdaq Composite Index was up 1.03% at 4 323.87 points.
With the day's advance, the S&P 500 is less than 1% away from an all-time high hit earlier this month. Over the past two sessions, the benchmark index has gained about 1.6%.
Investors were looking ahead to a two-day meeting of the US Federal Reserve's policy-setting committee, which begins on Tuesday. The central bank is not expected to deviate from previously announced policy plans, but since the Fed's stimulus has kept a floor under equity prices, market participants will be attuned to any hint of a change.
In the latest economic data, consumer prices rose 0.1% in February, as expected, while housing starts rose modestly from the previous month.
In company news, Hertz Global Holdings said it would spin off its equipment rental business for $2.5bn and use part of the proceeds to fund a stock buyback programme. Shares fell 0.9% to $26.98.
General Motors announced new recalls of 1.5 million vehicles on Monday. In an unprecedented public admission by a GM chief executive, Mary Barra acknowledged the company fell short in catching faulty ignition switches linked to 12 deaths. Shares rose 1.1% to $35.02.
GameStop shares fell 4.9% to $37.79 as the biggest decliner on the S&P 500. Wal-Mart Stores said it would allow shoppers to trade in used video games for anything from groceries to gadgets.
