U.S. stock market futures were modestly higher in overnight trading Tuesday after the S&P 500 closed in correction territory amid escalating tensions between Russia and Ukraine.

Futures contracts that are tied to Dow Jones Industrial Average rose 85 points. S&P 500 futures gained 0.35%, while Nasdaq 100 futures rose 0.5%.

During regular tradingFor its fourth consecutive session of negative trading, the Dow lost 483 points (or 1.42%) The 30-stock benchmark was down 700 points at one time. The S&P 500 shed 1.01%, and is now 10.25% below its Jan. 3 record close, putting the broad market index in correction territory. The Nasdaq Composite lost 1.23% in its fourth straight session.

The first round of sanctions against Russia was announced by President Joe Biden on Tuesday afternoon. These sanctions target Russian banks and the sovereign debt of Russia, as well as three people.

In a note to clients, Eylem Senyuz wrote that while there are uncertainties, “our work shows historically that military/crisis events tends to inject volatility into market and often cause short-term dips but stocks tend to rebound eventually unless the event pushes economy into recession.”

According to the firm, “Investor sentiment also indicates that positive surprises are unlikely.”

All 11 S&P 500 sectors declined on Tuesday, led to the downside by consumer discretionary stocks, which fell 3%. The rise in oil prices did not affect energy stocks, which moved lower. Brent crude, an international benchmark oil price, reached $99.50 per barrel. The session high for West Texas Intermediate crude oil futures was $96, which is the highest price since August 2014.

Ed Moya, Oanda’s director of Oanda said that the contagion risk would completely fuel inflationary pressures because energy prices will soar and this will derail large portions of the economic recovery from Covid.

He said that geopolitical risk could cause a slow growth cycle, which could eliminate the possibility of an increase in the Fed’s rate by half-point at the March 16th FOMC meeting.

Wall Street bets that there will be a rate increase at the Federal Reserve’s March meeting. According to the CME Group’s FedWatch tool. Inflation is soaring, so calls for an immediate 50-basis point increase at March’s meeting were growing.

Tensions between Russia and Ukraine have caused yields to fall, with the yield of the U.S. benchmark 10-year Treasury dropping below 2%. Investors are looking for safe assets.

As of Friday 78% of S&P 500 companies that have reported have topped earnings estimates, while 78% have exceeded revenue expectations, according to data from FactSet.