Wall Street ends day lower on risk aversion

• Financials help Dow recover the majority of daily losses.
• Technology extends losses, energy stays virtually unchanged.
• CBOE Volatility Index rises to highest level of 2018.

Major equity indexes in the U.S. started the day on the back foot on Wednesday weighed by the broad-based risk aversion and closed the day with modest losses despite a late recovery.

Reports of China planning to stop purchasing US government bonds weighed on the market sentiment. During the first half of the session, the CBO Volatility Index (VIX), Wall Street's fear gauge, advanced to its highest level since December 29, suggesting that investors were looking to stay away from risky assets. However, the VIX finished the day slightly lower as indexes pared their losses şn the second half of the day.

“As the day wore on, Treasury yields started to move lower on the realization the story doesn’t have any legs. That’s definitely helped equities. There’s no way on earth the Chinese stop buying U.S. Treasuries,” Robert Pavlik, chief investment strategist, SlateStone Wealth in New York, told Reuters. The 10-year bond yield during the session rose as much as 1.5%, boosting the S&P 500 Financials Sector (SPSY) and allowing it to close 0.85% higher. Nonetheless, the financial-heavy Dow Jones Industrial Average finished the day at 25,369.37, down 16.43 points, or 0.06%.

With the barrel of West Texas Intermediate struggling to extends its gains, the S&P 500 Energy Sector (SPNY) recorded small losses for the second straight day. Meanwhile, the risk-sensitive S&P 500 Information Technology Sector (SPLRCT) slumped 0.3%, dragging the tech-heavy Nasdaq Composite down to 7,151.60, where it was down 11.98 points, or 0.17%. The broader S&P 500 lost 3.31 points, or 0.12%, at 2,747.98.