Wall Street opens lower as G7 doesn’t mention monetary policy action

• G7 voices commitment to take necessary steps to counter coronavirus impact.
• Financial shares suffer heavy losses as Treasury bond yields extend slide.
• Real Estate and Healthcare sectors post modest gains.

Although the upbeat performance of major global equity indexes provided a boost to US stock index futures earlier in the day, Wall Street’s main indexes opened the day in the negative territory as the G7 statement failed to mention a coordinated monetary policy action.

G7 statement weighs on US stocks

As of writing, both the Dow Jones Industrial Average and the S&P 500 were down 0.55% on the day while the Nasdaq Composite was erasing 0.65%.

Following their emergency meeting on Tuesday, G7 finance ministers and central bank governors said they stand ready to take actions, “including fiscal measure where appropriate.” Commenting on the G7 statement, “if there is a need to stimulate the US economy due to the coronavirus, infrastructure is a priority,” US Treasury Secretary Mnuchin said.

Among the S&P 500 indexes that represent 11 major sectors, the Financials Index is down 1.6% in the early trade pressured by a 3.8% drop witnessed in the 10-year US Treasury bond yield. On the other hand, the defensive Real Estate and Healthcare indexes post modest gains in early trade to reflect a risk-averse atmosphere.