Stock futures jump on report that Russia is returning some troops to

U.S. stock futures surged on Tuesday morning after the Russian Defense Ministry reportedly announced that it had begun returning some troops to deployment bases after training exercises near the Ukrainian border.

Futures tied to the Dow Jones Industrial Average jumped 309 points, or 0.89%. S&P 500 futures climbed 1.18% and Nasdaq 100 futures advanced 1.6%.

Russian Defense Ministry spokesman Igor Konashenkov was quoted as saying military units from the southern and western districts of Russia had already begun returning to their garrisons, a move that could de-escalate the febrile geopolitical standoff between Russia and the West over Ukraine.

Wall Street is coming off a volatile Monday trading session.

The Dow closed lower by 171.89 points, or 0.5%, after falling more than 400 points at one point. The S&P 500 dropped as much as 1.2% before ending the day 0.4% lower. The Nasdaq Composite fell 0.9% at one point before closing just below the flatline.

Oil, meanwhile, popped to its highest level since September 2014 on Monday, while gold futures reached levels not seen since Nov. 16.

Those moves came as the Russia-Ukraine conflict appeared to escalate. Secretary of State Antony Blinken ordered the closing of the U.S. embassy in Kyiv, Ukraine, citing a “dramatic acceleration in the buildup of Russian forces” on Ukraine’s border.

“Investors are on edge with geopolitical tensions high and crude oil flirting with $100 a barrel, but after the wild ride on Friday, today’s flattish day really feels like a win,” LPL Financial chief market strategist Ryan Detrick said.

Concerns over multiple Fed rate hikes also kept investors on edge.

St. Louis Fed President James Bullard told CNBC’s Steve Liesman on Monday that the central bank needs to be aggressive in fighting inflation. The consumer price index rose last month at its fastest year-over-year pace since 1982, leading Citigroup and Goldman Sachs to increase their rate hike outlook for 2022 to seven.

“I do think we need to front-load more of our planned removal of accommodation than we would have previously. We’ve been surprised to the upside on inflation. This is a lot of inflation,” Bullard said.

“Our credibility is on the line here and we do have to react to the data,” he added. “However, I do think we can do it in a way that’s organized and not disruptive to markets.”

LPL’s Detrick said that while investors should be concerned about inflationary pressures and tighter U.S. monetary policy, the market’s fundamental backdrop remains strong.

“Yes, Fed hikes are coming, inflation is out of control, and geopolitical tensions are high, yet let’s not forget that we are about to wrap up another extremely solid earnings season,” he said. “There are a lot of worries out there, but to see really strong earnings last quarter, along with companies overall quite optimistic about our economy’s future, this is something that…