Wall Street opens in red as risk-off dominates

Eren Sengezer FXStreet

Pressured by the prevailing risk-off mood, major equity indexes started the day in the negative territory and as of writing, the Dow Jones Industrial Average was losing 1.2% on the day while the S&P 500 and the Nasdaq Composite were losing 1.05% and 1.3%, respectively.

Out of eleven major sectors, which are all in the red in the early trade, in the S&P 500, the Consumer Discretionary and the Healthcare indexes are leading the losses with 2.2% and 1.6% losses. Additionally, dragged by the sharp losses witnessed in Amazon and Microsoft shares, the S&P 500 Technology Index is losing more than 1%.

Earlier in the day, the data published by the Federal Reserve Bank of New York revealed that the manufacturing sector lost momentum in December with the headline general business conditions index falling twelve points to 10.9. Later this week, the FOMC is going to announce its policy rate decision and publish its monetary policy statement. Ahead of this event, US President Donald Trump voiced his criticism, once again, in a tweet that read: "It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!"

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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