Following their recent sell-off, US markets steadied overnight, although trading was choppy amid ongoing tensions in Ukraine.
The situation in Ukraine weighed on sentiment initially after Russia threatened to renew conflict in the strife-torn nation.
However Wall Street recovered from its initial losses as investors braced for the second quarter earnings season, which kicked off when Alcoa reported its results after the bell.
The aluminium giant’s earnings topped estimates, and its shares jumped in after-hours action, raising hopes other companies will also surprise to the upside.
A sharp drop in the US dollar contributed to a sizeable rally in commodity markets.
Oil leapt two percent after a US government report forecast higher crude prices and lower production this year.
Elsewhere, gold recovered above $1300 an ounce, as support for the yellow metal came from heightened tensions in Ukraine.
As mentioned, the US dollar was sold off across the board, with its heaviest decline coming against the yen after the Bank of Japan yesterday refrained from outlining additional stimulus measures.