Futures Fall As World Awaits Putin’s Ukraine Move; Five Stocks That

Dow Jones futures fell sharply Sunday evening, along with S&P 500 futures and Nasdaq futures, amid widespread expectations the Russia will invade Ukraine in the next several hours or days. The stock market rally suffered significant damage last week, with the major indexes below key support and starting to move toward their Jan. 24 lows.

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Invasion fears are weighing heavily on the market rally, which is already dealing with inflation and other big headwinds. Yncertainty over what Russian President Vladimir Putin would do adds significantly to the volatility.

Belarus said Sunday that its big war games with Russia will be extended beyond Feb. 20, citing unrest in parts of Eastern Ukraine. Russia had said its troops would return home at the conclusion of the massive drills on Feb. 20. But Russian forces have continued to build up.

Various reports, citing U.S. officials, say Russia has given military commanders orders to go ahead with an invasion of Ukraine. Commanders on the ground are making specific plans for maneuvers, with satellite imagery suggesting smaller units are moving within a few miles of the border.

Publicly, Russia says it wants a diplomatic solution. Putin and French President Emmanuel Macron on Sunday agreed to trilateral talks that would also include German and Ukrainian leadership, according to a French statement.

President Joe Biden abruptly cancelled a Sunday trip to Delaware amid the Ukraine crisis. Biden late Friday said that he was confident that Putin has decided to invade Ukraine within the next few days.

Cease-fire violations between Ukraine and pro-Russian separatists have surged in the past few days. Separatist leaders have ordered a full military mobilization and civilian evacuation, claiming Ukraine is close to launching its own offensive. Local, pro-Russia media has claimed explosions in rebel-held parts of eastern Ukraine. These events offer a pretext for Russia to stay mobilized and likely to launch a new Ukraine invasion.

The U.S. and Western nations are poised to impose major economic sanctions vs. Russia in the event of a Ukraine invasion. On Saturday, Ukrainian President Volodymyr Zelensky urged the West to impose sanctions now.

But, setting aside the geopolitics, the stock market rally looks ever weaker. Investors should take a defensive posture with minimal exposure.

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Dow Jones Futures Today

Dow Jones futures sank 1% vs. fair value. S&P 500 futures skidded 1.2% and Nasdaq 100 futures tumbled 2.2%.

Crude oil futures rose 2%.

While Dow futures are open Sunday evening as usual, U.S. markets will be closed Monday in observance of the Presidents Day holiday. Other stock markets will be open around the world, however.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

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