U.S. Stocks Turning In A Mixed Performance Amid Focus On Ukraine, Fed

After moving sharply lower over the two previous sessions, the major U.S. stock indexes have moved in opposite directions during trading on Monday. While the tech-heavy Nasdaq has shown a notable rebound, the Dow and the S&P 500 are seeing further downside.

Currently, the major averages continue to turn in a mixed performance. The Nasdaq is up 98.82 points or 0.7 percent at 13,882.97, but the Dow is down 175.45 points or 0.5 percent at 34,562.61 and the S&P 500 is down 9.69 points or 0.2 percent at 4,408.95.

The mixed performance on Wall Street comes as traders keep a close eye on developments regarding the tensions between Ukraine and Russia.

President Joe Biden spoke with Russian President Vladimir Putin over the weekend, with a senior administration official describing the call as “professional and substantive” but noting there was “no fundamental change in the dynamic that has been unfolding now for several weeks.”

“We believe that we have put ideas on the table that would be in our and our allies’ interest to pursue, that would enhance European security, and that would also address some of Russia’s stated concerns,” the official said in a call with reporters.

The official added, “But it remains unclear whether Russia is interested in pursuing its goals diplomatically as opposed to through the use of force.”

Russian Foreign Minister Sergey Lavrov told Putin in remarks aired on Russian state television on Monday that “there is always a chance” that diplomacy could still work.

Traders are also expressing some uncertainty about the outlook for monetary policy following mixed remarks by Federal Reserve officials.

While St. Louis Fed President James Bullard told CNBC he favors front-loading planned interest rate increases, San Francisco Fed President Mary Daly told CBS’ “Face The Nation” she prefers a measured pace of rate hikes.

Energy stocks are seeing considerable weakness after bucking the downtrend in the previous session. The pullback by energy stocks comes despite a continued increase by the price of crude oil.

Reflecting the weakness in the energy sector, the NYSE Arca Oil Index is down by 2.5 percent, the Philadelphia Oil Service Index is down by 2.2 percent and the NYSE Arca Natural Gas Index is down by 2.2 percent.

Pharmaceutical, utilities and biotechnology stocks have also shown notable moves to the downside, extending a recent pullback.

On the other hand, airline stocks have shown a substantial move back to the downside, with the NYSE Arca Airline Index soaring by 2.4 percent.

Semiconductor stocks are also turning in a strong performance on the day, as reflected by the 1.3 percent gain being posted by the Philadelphia Semiconductor Index.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index plunged by 2.2 percent, while China’s Shanghai Composite Index slumped by 1 percent.

The major European markets have also shown notable moves to the downside on the day. While the U.K.’s FTSE 100 Index has tumbled by 1.7 percent, the German DAX Index is down by 2.1 percent and the French CAC 40 Index is down by 2.3 percent.

In the bond market, treasuries have shown a significant pullback after jumping in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 6.7 basis points at 2.022 percent.