Stock Market Mixed As Investors Monitor Ukraine Crisis; This Chip Stock Rallies

The U.S. stock market was mixed Monday morning as global financial markets kept a nervous watch on a possible Russian invasion of Ukraine.

As Russia continued to amass military forces around Ukraine, diplomatic efforts to avoid a war also continued. German Chancellor Olaf Scholz is traveling to Ukraine on Monday and Russia on Tuesday.

There was some hope for peace Monday morning, after Russia’s Foreign Minister Sergey Lavrov suggested that Moscow should continue talks with Western leaders.

On Friday, U.S. stocks tumbled after U.S. officials said a Russian invasion could happen within a matter of days.

Stock indexes were volatile. The Nasdaq composite rose 0.4%, while the S&P 500 fell 0.2% and the Dow Jones Industrial Average fell 0.5%.

But small caps, which have less exposure to foreign markets, rose. The Russell 2000 climbed 0.7%.

Volume rose on the NYSE and Nasdaq compared with the same time on Friday.

In Europe, the German DAX was down 2% Monday, while the Paris CAC 40 lost 2.1% as both gapped down. The London FTSE 100, which had been holding up better, was down 1.3%.

In Asia, the major indexes had their worst day since Jan. 27. The Nikkei 225 index slid 2.2% as the Tokyo index snapped a three-day win streak. The Shanghai Composite fell 1%. And the Hong Kong Hang Seng Index lost 1.4%.

Stock Market Watching Oil, Bond Markets

U.S. crude prices fell 0.8% to $92.34 a barrel — still near the highest levels since 2014. The yield on the 10-year Treasury note climbed 3 basis points to 1.98%.

Energy Select Sector SPDR (XLE) fell 2% and was the weakest S&P sector ETF. Technology, communications services, consumer discretionary and transportation sectors rose 0.3% to 1.4%.

Advanced Micro Devices (AMD) climbed after the chip company announced some top executive moves. CEO Lisa Su was named chair, while John Caldwell becomes lead independent director. Caldwell had been chair since May 2016. AMD also announced that former Xilinx board members Jon Olson and Elizabeth Vanderslice were added to AMD’s board as part of AMD’s acquisition of Xilinx.

AMD shares sank near the 200-day moving average Friday and bounced nearly 4% Monday morning.

EV stocks rebounded after trading lower in extended trading on a report that car sales in China fell for the eighth straight month. The China Passenger Car Association said January sales fell 4.4% from a year ago, and another weak month is expected in February, MarketWatch reported.

China-based electric vehicle maker Nio (NIO) was nearly flat early Monday. Xpeng (XPEV), which fell more than 2% premarket, climbed 1.1%. And Li Auto (LI) rose 2%. Tesla (TSLA), which has a large presence in China, climbed 1.7%. Tesla shares remain in a slump.

IBD 50 Lags Stock Market

The Innovator IBD 50 ETF (FFTY) fell 0.3%.

Deere (DE), a recent addition to the IBD 50, rose 0.3% and is holding above the 388.20 buy point of a cup-with-handle base. The farming heavy equipment maker reports earnings Friday morning.

Global Ship Lease (GSL), Williams Cos. (WMB) and Oneok (OKE) also are desperately trying to hold at their buy points.

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