U.S. stock indexes rose, while energy prices slumped and bonds sold off, after Russia said it had pulled back some troops from the Ukrainian border, allaying some fears about conflict between the two countries.

The $S&P 500 index(.SPX.US)$ climbed 69.40 points, or 1.6%, to 4471.07 Tuesday, snapping a three day losing streak. The blue-chip $Dow Jones Industrial Average(.DJI.US)$ gained 422.67 points, or 1.2%, to 34988.84, while the technology-heavy $Nasdaq Composite Index(.IXIC.US)$ added 348.84 points, or 2.5%, today to 14139.76.

The threat of war between Ukraine and Russia has, in recent days, added a geopolitical element to an already complex market outlook. Investors also have been weighing inflation concerns, as well as signs of easing supply-chain issues.

"We have two big crosscurrents. One that has been out there for a while, which is inflation. The other being in the near term -- which has ramped up over the last week -- which is Russia," said David Kalis, manager of the Future Fund Active ETF.

Fears of a Russian invasion into Ukraine, which have dogged investors in recent days, abated somewhat Tuesday after Russian President Vladimir Putin said Moscow had withdrawn some troops from the border even as it was still conducting large-scale military operations.

European and U.S. officials, however, said they had not seen evidence of a significant drawdown in forces. Separately, the Ukrainian government said Tuesday that a suspected cyberattack had hit the country's Defense Ministry and two state banks.

"I don't think we're out of the woods just because we had one good day," Vincent Deluard, global macro strategist at StoneX.

Oil prices dropped from the eight-year high they hit Monday. Brent crude, the international oil benchmark, lost $3.20 a barrel, or 3.3% to $93.28. Benchmark European natural-gas prices slumped 3.4%.

Yields on benchmark U.S. 10-year Treasury notes rose to 2.044%, the highest settle value since July 2019. Bond yields and prices move in opposite directions.

Bitcoin prices climbed, adding 4.2% to their Monday 5 p.m. ET levels of $42,256.83.

"The market is believing what it is hearing in the headlines, but you do have to be careful with these things," said Hani Redha, a multiasset fund manager at PineBridge Investments. "We have to be cautious on news like this in the so-called fog of war."

Investors continue to assess rising inflation as they look ahead to the Federal Reserve meeting in March. Fresh data on Tuesday showed that prices suppliers charged businesses and other customers jumped in January, rising a seasonally adjusted 1% from the prior month, the sharpest rise since May 2021. Producer prices rose 9.7% on a 12-month basis, nearly the same as the prior month.

European stock indexes rallied after Monday's sharp losses, with the pan-continental Stoxx Europe 600 up 1.4%. Russia's MOEX index rose over 3%. The Russian ruble rallied 1.2% against the dollar and the Ukrainian hryvnia rose 0.9%.

Russia is among the world's largest suppliers of oil, as well as the biggest exporter of wheat and a major producer of key metals, such as palladium, aluminum and nickel, while Ukraine is a key transit route for Europe's natural-gas supplies.

"The biggest impact this thing has had has been in commodities and the feed through of that into inflation," said Mr. Redha. A conflict that pushes commodity prices and inflation higher could prompt central banks to raise interest rates faster than planned, he added.

Some investors are betting that the international economic impact from a conflict would be limited. "In the near term, the market will react first and ask questions later," said Brian O'Reilly, head of market strategy at Mediolanum International Funds. "But anything outside a massive escalation of tensions doesn't really change the trajectory of the global economic outlook."

Earnings season continues. After Tuesday's close,$Airbnb(ABNB.US)$ posted its second consecutive quarterly profit for the three months ended Dec. 31, driven by strong bookings in suburban areas. Its shares closed up $10.41, or 6.1%, to $180.07, and rose in after-hours trading. $Marriott International(MAR.US)$ shares rose $9.87, or 5.8%, to $181.20 after the hotelier reported that its fourth-quarter revenue doubled.

Nasdaq-listed $Tower Semiconductor(TSEM.US)$ rose 42% after The Wall Street Journal reported that Intel was close to buying the Israeli chip company for nearly $6 billion.

Asian stock markets, which mostly closed before Russia announced its pullback, were generally lower. Both Japan's Nikkei 225 and Hong Kong's Hang Seng Index fell 0.8%. Mainland China's Shanghai Composite Index rose 0.5%.