S&P 500 Index opens modestly lower, defensive sectors trade in positive territory

Major equity indexes in the US are posting modest losses.
Technology shares underperform and weigh on Nasdaq on Tuesday.
US Federal Reserve extends lending programs to the end of the year.

Eren Sengezer FXStreet

Wall Street's main indexes opened the second day of the week modestly lower amid cautious market mood. Reflecting the risk-averse environment, the CBOE Volatility Index (VIX), Wall Street's fear gauge, is up 3% on the day.

As of writing, the S&P 500 was down 0.22% on the day at 3,231, the Dow Jones Industrial Average was losing 0.4% at 26,480 and the Nasdaq Composite was falling 0.43% at 10,491.

Just at the opening bell, the US Federal Reserve announced that it extended its lending facilities, which were set to expire at the end of September, until the end of 2020. Nevertheless, this announcement doesn't seem to be having a significant impact on market sentiment.

Among the 11 major S&P 500 sectors, the risk-sensitive Technology Index is down 0.6% on the day. On the other hand, defensive sectors, Utilities, Real Estate and Healthcare, trade in the positive territory in the early trade.

S&P 500 chart (daily)

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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