Major US equity indices opened lower on Wednesday and were being weighed down by resurfacing trade/geopolitical concerns.
Investors dumped perceived riskier assets, including equities after the US President Donald Trump said that he was not very pleased with the progress of the US-China trade talks.
Trump also cast doubt on the upcoming historic summit with the North Korean leader in June and said that it may not go ahead as planned as Kim Jong Un is not willing to give up his nuclear ambitions.
Early losses, however, remained tepid amid expectations for more fiscal stimulus following Trump’s comments late Tuesday that his administration would be submitting additional tax cuts sometime prior to November and it is going to be something very special.
Meanwhile, today’s key focus would be on the release of latest FOMC meeting minutes, due later during the NY trading session, which might influence Fed rate hike expectations and eventually drive sentiment surrounding alternative assets classes, including equities.
During the opening hour of trade, the Dow Jones Industrial Average lost around 80-points to 24,755 and the broader S&P 500 Index slipped nearly 8-points to 2,716. Meanwhile, tech-heavy Nasdaq Composite Index retreated over 18-points and fell to 7,360 level.
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