As signalled by the sharp drops witnessed in Asian and European stocks, major equity indexes in the U.S. started the day deep in the negative territory on Friday as investors opted out to flee to safer assets, such as Treasury bonds, after U.S. President Trump threatened Mexico with 5% tariff on all Mexican imports by June 10 if they failed to control the illegal immigration through the southern border.
As of writing, the Dow Jones Industrial Average was losing 1.26% on the day while the S&P 500 and the Nasdaq Comspoıite were erasing 1.35% and 1.55%, respectively. Meanwhile, the CBOE Volatility Index, Wall Street’s fear gauge, was up more than 10% to confirm the dismal market mood.
In the early trade, 9 of 11 major S&P 500 sectors are losing more than 1% with the Communication Services Index leading the way with a 2% drop. The so-called defensive sectors, Real Estate and Utilities, are virtually unchanged.
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