Wall Street opens sharply lower as risk aversion takes over

  • Coronavirus infections rose sharply after change in counting method.
  • CBOE Volatility Index rises more than 7% on Thursday.
  • Risk-sensitive energy and tech shares suffer heavy losses. 

Wall Street's main indexes started the day sharply lower on Thursday as resurfacing coronavirus fears weigh on risk-sensitive assets. As of writing, the CBOE Volatility Index, Wall Street's fear gauge, was up 7.3% on a daily basis to reflect the risk-averse environment.

China has reported a sharp upsurge in the number of confirmed coronavirus infection cases after changing the method of counting and triggered a flight-to-safety as investors realized that the outbreak would be more severe than initially anticipated.

Energy and tech shares underperform

At the moment, the Dow Jones Industrial Average is down 0.4% on the day, the S&P 500 and the Nasdaq Composite are erasing 0.3% and 0.5%, respectively. Among the 11-major S&P 500 sectors, the risk-sensitive Energy Index and the Technology Index are both down around 0.5%. On the other hand, the defensive Utilities Index is the only major sector in the positive territory in the early trade.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD challenges weekly lows after mixed Durable Goods Orders

US Durable Goods Orders were up a measly 0.4% in August, missing expectations of 1.0%, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Equities bounce from lows, but the dollar maintains its strength.


GBP/USD loses 1.2700 as the dollar keeps rallying

GBP/USD approaches its weekly low at 1.2674 as demand for the American currency extends into the final trading session of the week. Hopes for a UK trade deal with the EU doing little for Sterling.


Gold: Downside appears more compelling in the NFP week ahead

Gold (XAU/USD) shed about 4.5% in the past week, delivering a weekly closing below the August month low of $1863. The yellow metal booked the first weekly loss in three, with the risks skewed to the downside in the US Non-Farm Payrolls (NFP) week ahead.  

Gold News

Breaking: ​​​​​​​The IRS makes it hard to pretend you don’t have Bitcoin

The cryptocurrency holders might have a hard time trying to hide their Bitcoins or other digital assets. IRS considers changing the standard 1040 form by including a bold question on the front page:  At any time during 2020, did you sell, receive, send, exchange, or otherwise acquire any financial interest in any virtual currency? 

Read more

WTI moves back to flat and once again trades above $40 per barrel

It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December.

Oil News