- CBOE Volatility index is down more than 4% on Wednesday.
- S&P 500 Technology Index leads rally in early trade.
- Defensive sectors trade in negative territory to reflect risk-on environment.
Wall Street’s main indexes opened higher on Wednesday boosted by the improving market sentiment. As of writing, the Dow Jones Industrial Average was up 0.3% on the day, the S&P 500 was at fresh all-time highs rising 0.5% and the Nasdaq Composite was adding 0.75%. Reflecting the upbeat mood, the CBOE Volatility Index, Wall Street’s fear gauge, is down more than 4%.
Tech shares outperform ahead of FOMC minutes
Earlier in the day, the People’s Bank of China (PBoC) said that the size and the duration of the coronavirus’ impact on the economy were expected to be limited to ease concerns over a global economic slowdown. The PBoC also noted that it will continue to “comprehensively” use multiple monetary policy tools.
Among the 11 major S&P 500 sectors, the risk-sensitive Technology Index is leading the rally by rising 1%. On the other hand, the defensive Utilities and Real Estate indexes trade in the negative territory.
Later in the session, investors will be paying close attention to the FOMC’s minutes of the January 28-29 monetary policy meeting.