Wall Street opens modestly lower as technology shares underperform
- Washington delays decision on Huawei to weigh on technology shares.
- CBOE Volatility Index rises more than 5% on Friday.
- Defensive shares stay in positive territory following opening bell.
Wall Street's main indexes started the day lower on Friday as investors continue to stay away from risk. The disappointing economic growth data from the UK and the political turmoil in Europe seem to be weighing on the market sentiment with the CBOE Volatility Index, Wall Street's fear gauge, rising more than 5% today.
As of writing, the Dow Jones Industrial Average was down 0.32% on the day while the S&P 500 and the Nasdaq Composite were erasing 0.45% and 0.75%, respectively.
Among the 11-major S&P 500 sectors, the risk-sensitive Technology Index is down more than 1% in the early trade to lead the losers. Reports of Washingon holding off on Huawei licenses following China's decision to halt crop-buying from the United States put additional pressure on the sector.
On the other hand, the defensive Real Estate and Utilities indexes post small gains in the first hour of the session to confirm the dismal market mood.
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.
