Major equity indexes in the U.S. started the day modestly higher as investors returned from the long weekend. However, with the latest headlines surrounding the U.S.-China trade dispute hinting at a further escalation of the trade war, stock markets could have a difficult time pushing higher. In fact, the CBOE Volatility Index, Wall Street’s fear gauge, is up nearly 4% on the day. As of writing, the Dow Jones Industrial Average was up 0.47% on the day while the S&P 500 and the Nasdaq Composite were adding 0.51% and 0.83%, respectively.
Earlier today, Hu Xijin, editor-in-chief of the Chinese news outlet Global Times, claimed that China was considering to cut exports of rare earth metals to the U.S.
Among the 11 major S&P 500 sectors, the Technology and the Communication Services indexes are leading the rally in the early trade by gaining 0.85% and 0.75%. On the other hand, falling Treasury bond yields weigh on the rate-sensitive Financials Index and forces it to stay in the negative territory.