* Markets deemed vulnerable to geopolitical shocks
* S&P 500 comes off biggest weekly decline in seven
* Alibaba will begin U.S. IPO process
* Futures up: Dow 85 pts, S&P 9.5 pts, Nasdaq 22.75 pts
By Ryan Vlastelica
NEW YORK, March 17 U.S. stock index futures rose
on Monday, rebounding from a steep drop in the previous week,
after Sunday's referendum over whether Crimea will join Russia
passed without violence.
* While markets are seen as vulnerable to further
developments in what is considered the biggest crisis between
Russia and the United States since the Cold War, anticipated
sanctions against Russia had yet to materialize.
* The 97-percent vote in Crimea in favor of quitting Ukraine
was condemned as illegal by Kiev and the West, with the White
House calling Russian actions "dangerous and destabilizing."
* The geopolitical tension weighed on equities last week,
with the S&P 500 suffering its biggest weekly loss in
seven. The benchmark index closed below a key technical support
level of 1,850 for a second straight day on Friday, and is now
down 2 percent from its all-time closing high.
* In a sign of investor anxiety, the CBOE Volatility index
jumped to its highest since early February on Friday,
though the so-call "fear index" remains at historically low
* S&P 500 futures rose 9.5 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures added 85
points and Nasdaq 100 futures rose 22.75 points.
* Markets have not undergone a sustained pullback in more
than a year, with investors using periods of market weakness as
buying opportunities. The U.S. Federal Reserve's massive
stimulus program has helped keep a floor under equity prices,
and market participants are looking ahead to a two-day meeting
of the Fed's policy-setting committee, which begins Tuesday.
* The Fed is unlikely to deviate from previously announced
policies, but it could use the meeting - the first with Janet
Yellen as chair - to map out its plan for rate rises, whether in
the formal statement it issues afterward or at Yellen's news
conference. The central bank has said that the first rate rise
is likely to come around the middle of next year, as long as the
U.S. economy keeps healing.
* A read on March New York manufacturing is scheduled for
release at 8:30 a.m. ET (1230 GMT) and is seen rising from the
prior month. February industrial output data is due out at 9:15
a.m. and is seen rising by 0.1 percent.
* In company news, Chinese e-commerce giant Alibaba Group
Holding Ltd said on Sunday it would begin the process towards a
U.S. initial public offering, ending months of speculation.
* Intercept Pharmaceuticals Inc on Sunday said its
experimental liver disease drug was effective in a third
late-stage clinical trial, setting the stage for the company to
file for marketing approval. Shares fell 5.9 percent to $435 in
* Giant Investment Ltd will acquire Chinese online gaming
company Giant Interactive Group Inc for $3 billion and
take it private, the companies said on Sunday.