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  • Lack of progress in trade talks weighs on market sentiment.
  • Markets price virtually no chance of a 50 bps Fed rate cut in July.

Major equity indexes in the U.S. started the day in the negative territory on Tuesday as investors struggle to find a reason to return to risk-sensitive assets such as stocks. Earlier today, the U.S. Commerce Secretary Wilbur Ross said that they have decided to keep Huawei on the blacklist know as the Entity List, suggesting that the trade conflict is unlikely to be resolved anytime soon.

As of writing, the Dow Jones Industrial Average was down 0.38% on the day, the S&P 500 was erasing 0.22% and the Nasdaq Composite was flat on the day.

Among the 11 major S&P 500 sectors, Healthcare is the only index that’s in the positive territory in the early trade. Among loser, the trade-sensitive Materials and Industrials indexes are down 1% and 0.75%, respectively.