- CBOE Volatility Index (VIX) falls 4% on Thursday.
- Recovering Treasury bond yields allow financial shares to gain traction.
- Defensive sectors stay in negative territory to confirm risk-on atmosphere.
Major equity indexes in the United States started the day modestly higher on Thursday as risk-aversion is losing its dominance over the market action. As of writing, the Dow Jones Industrial Average was up 0.37% on the day while the S&P 500 and the Nasdaq Composite were adding 0.6% and 0.66%, respectively. In the meantime, the CBOE Volatility Index, Wall Street’s fear gauge, is down 4% in the early trade to confirm the upbeat market sentiment.
Among 11-major S&P 500 sectors, the rate-sensitive Financials Index is up 0.85% on the day to lead the rally supported by a decisive recovery seen in the 10-year US Treasury bond yield. The Industrials and the Materials indexes, which suffered heavy losses amid escalating US-China trade tensions, are both up around 0.8%.
On the other hand, the defensive Real Estate, Utilities, and Consumer Staples indexes are posting small losses after the opening bell.
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