Wall Street opens modestly lower on fading trade optimism
|- China's foreign ministry says they are dissatisfied with US action on Huawei.
- 10-year US Treasury bond drops more than 2% to weigh on financial shares.
- Falling crude oil prices weigh on energy shares on Tuesday.
After closing the last three sessions higher, major equity indexes in the US started the day in the negative territory on Tuesday. As of writing, the Dow Jones Industrial Average was losing 0.27% on the day while the S&P 500 and the Nasdaq Composite were erasing 0.4% and 0.2%, respectively.
Following the US decision to delay the ban on Huawei for 90 days while adding 46 new Huawei subsidiaries to the entity list, China's Commerce Ministry said that they were dissatisfied with the US sanctions on Huawei, killing hopes of the US action to bring sides closer to a trade deal.
The risk-off atmosphere ramped up the demand for safe-haven Treasury bonds and forced the yield on the 10-year reference to lose more than 2% on the day and weighed on the rate-sensitive S&P 500 Financials Index, which was last down 0.9% on the day to lead the losers.
In the meantime, following Monday's recovery, crude oil prices turned south today and the barrel of West Texas Intermediate was last down 1.4% on the day, causing the S&P 500 Energy Index to erase 0.85% in the early trade.
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