Wall Street opens sharply lower dragged by energy

Eren Sengezer FXStreet

Major equity indexes in the U.S. started the day sharply lower amid heavy losses suffered by the energy index. As of writing, the Dow Jones Industrial Average was down 130 points on the day while the S&P 500 and the Nasdaq Composite were erasing 0.5% and 0.6%, respectively.

With the barrel of West Texas Intermediate losing more than 1% on Friday, the S&P 500 Energy Index came under pressure and was last seen down 1.5% on the day.

On the other hand, concerns over the potential negative impact of the government shutdown on the economy and fears about more companies reporting disappointing sales figures continue to weigh on the market sentiment. Reflecting the risk-off mood, the CBOE Volatility Index, Wall Street's fear gauge, is up 2.3% at the moment.

All the 11 major sectors in the S&P 500 are staying in the negative territory in early trade. Behind energy, industrials and financials are both dropping around 1%.

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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