US stocks on defensive amid persistent trade worries, Nasdaq underperforms

Major US equity indices witnessed a subdued opening on Wednesday as investors preferred to stay on the sidelines and look for any fresh trade-related developments. 

The US and Canada were set to resume trade talks on Wednesday in an effort to resolve differences as they work toward recasting the North American Free Trade Agreement (NAFTA). 

Meanwhile, the deadline for new US tariffs ends on Thursday and investors seemed convinced that the US President Donald Trump will go through his plans to impose a fresh round of tariffs on $200 billion worth of Chinese goods. 

Apart from trade worries, the recent pressure on emerging market currencies further weighed on investors’ sentiment and drove flows away from perceived riskier assets – like equities. 

On the economic data front, the US trade deficit jumped to a five-month high level of $50.1 billion in July from $45.7 billion in the previous month and did little to provide any meaningful bullish impetus.

At the time of writing this report, the Dow Jones Industrial Average treaded water near the previous session’s closing level of 25,955. Meanwhile, the broader S&P 500 Index slipped around 7-points to 2,890 and tech-heavy Nasdaq Composite Index was down over 55-points to 8,035.