Wall Street opens in red as markets turn risk-averse

• Investors get ready for the United States (US) – China trade talks.
• All 11 major S&P 500 sectors stay under pressure in early trade.
• CBOE Volatility Index rises more than 5% on Monday.

Major equity indexes in the United States (US) started the week on the back foot  as investors seem to be repositioning themselves ahead of this week’s critical high-level trade talks. The CBOE Volatility Index, Wall Street’s fear gauge, is rising nearly 6% on the day to suggest markets are turning risk-averse.

As of writing, the Dow Jones Industrial Average was down 0.5% on the day while the Nasdaq Composite and the S&P 500 were both erasing 0.45%.

All 11 major sectors of the S&P 500 are losing between 0.35% and 0.65% in the early trade to reflect participants’ unwillingness to make large bets.

Earlier on Monday, White House spokeswoman Stephanie Grisham confirmed that high-level trade talks will take place on Thursday, October 10th.  “The two sides will look to build on the deputy-level talks of the past weeks. Topics of discussion will include forced technology transfer, intellectual property rights, services, non-tariff barriers, agriculture, and enforcement,” Grisham said in a statement.