Wall Street opens in red amid trade uncertainty
- Trump says China is not buying US agricultural products.
- Soft inflation data confirms a Fed rate cut tomorrow.
- Risk aversion allows defensive sectors to climb higher on Tuesday.
Major equity indexes in the US started the day in the negative territory on Tuesday as hinted by the sharp fall in the S&P 500 Futures earlier in the day. As of writing, the Dow Jones Industrial Average was down 0.33% on the day while the S&P 500 and the Nasdaq Composite were losing 0.4% and 0.5%, respectively.
US President Donald Trump today said that there were no signs of China buying agricultural products from the US as promised and warned China against waiting for the 2020 election in the US to strike a deal. Trump further added that he was not sure if he will accept China's offer in trade talks.
Among the 11 major S&P 500 sectors, the risk-sensitive Technology and Communication Services indexes are both erasing around 0.6% on the day. On the other hand, the defensive Real Estate and Utilities indexes are posting modest daily gains to confirm the risk-off atmosphere.