Wall Street opens lower with only defensive sectors trading in green

• CBOE Volatility Index rises more than 2% on Wednesday.
• 9 out of 11 major S&P 500 sectors are in the negative territory.

Wall Street’s main indexes started the day in the negative territory as investors stay away from risky assets in the absence of positive developments regarding the United States (US)-China trade dispute. As of writing, the Dow Jones Industrial Average was down 0.2% on the day while the S&P 500 and the Nasdaq Composite were erasing 0.15% and 0.22%, respectively.

Among the 11 major S&P 500 sectors, only the defensive sectors,  Utilities and Real Estate, are in the positive territory. Reflecting the sour market sentiment, the CBOE Volatility Index, Wall Street’s fear gauge is up nearly 2.5% in the early trade.

The US Senate’s approval of the Hong Kong human rights bill caused concerns over the possibility of heightened geopolitical tensions making it difficult for the US and China reaching a trade deal. Although CNBC  Beijing Bureau Chief  Eunice Yoon  earlier in the day said that China was not looking to link these two events, markets don’t seem to be convinced yet.