US open: Volatility spikes as political storm clouds gather over Capitol Hill

Fresh allegations of improprieties in the Oval Office are finally provoking a response from Wall Street, sending some traders dashing to buy protection from downside risks.

Overnight, The New York Times said US president Donald Trump had asked Federal Bureau of Investigation chief James Comey to "let go" of an investigation into his former national security adviser, Michael Flynn.

At 1603 BST, the Chicago Board of Options Exchange's VIX volatility index was 15.49% higher to 12.30 - a still relatively subdued level by historical norms.

Meanwhile, the Dow Jones Industrial Average was down by 1.16% to 20,736.52 with the S&P 500 shedding 1.10% alongside it to 2,374.29 and the Nasdaq Composite off by 1.33% at 6,087.12.

Nevertheless, IG's Chris Beauchamp sounded a word of prudence, telling clients not to rush to the assumption that Donald Trump was inevitably headed towards impeachment hearings.

Perhaps, yet gold futures, the most standard of safe haven assets, was up by 1.58% to $1,255.90/oz. on COMEX. US Treasuries, another favourite of investors in dangerous times, were also wanted, sending the yield on the benchmark 10-year US Treasury note seven basis points lower to 2.25%.

"Over-eager bears should tread with care," Beauchamp said.

"His election campaign always seemed one day away from disaster, and his presidency thus far has been remarkably similar. But the campaign won out in the end, and it would be unwise to assume that impeachment is now a given."

On that note, Republican Senator John McCain, one of Trump's most vociferous critics said: "We've seen this movie before. It’s reaching Watergate size and scale. ... This is not good for the country."

The Energy Information Administration, the Department of Energy's statistical arm was set to publish its weekly taly of US oil stockpile sat 1530 BST.

From a sector standpoint, banks were the worst performing corner of the market at the start of trading on Wednesday, with the KBW index of lenders' shares getting walloped for 2.61%.

That came along losses for Investment services (-2.66%), Apparel retailers (2.46%), Toys (2.39%) and Leisure goods (2.39%).

Stock in American Eagle Outfitters was also lower as the retailer became the latest in the growing list of companies in its sector to disappoint investors.

The teen apparel retailer posted first quarter earnings per share of 16 cents (consensus: 17 cents); although it did beat on sales its guidance fell short of Wall Street estimates.

Target Corp. on the other hand pleased markets after posting better than expected first quarter EPS of $1.21, with management reaffirming its annual guidance for profits.

Shares in Concert Pharmaceuticals slid after the FDA put its hair loss drug on clinical hold.

Cisco Systems's latest quarterly financials - whose shares have risen on the back of the recent 'WannaCry' ransomware attack - are on tap after the close.

Dow Jones - Risers

Wal-Mart Stores Inc. (WMT) $75.39 0.37%
Coca-Cola Co. (KO) $43.96 0.24%
Procter & Gamble Co. (PG) $86.43 0.23%
Travelers Company Inc. (TRV) $120.13 0.17%
McDonald's Corp. (MCD) $147.44 0.10%
International Business Machines Corp. (IBM) $153.80 0.08%
Nike Inc. (NKE) $52.77 -0.02%
Cisco Systems Inc. (CSCO) $34.26 -0.10%
Intel Corp. (INTC) $35.78 -0.11%
Pfizer Inc. (PFE) $32.53 -0.21%

Dow Jones - Fallers

Goldman Sachs Group Inc. (GS) $220.80 -2.13%
JP Morgan Chase & Co. (JPM) $85.88 -1.97%
Walt Disney Co. (DIS) $105.90 -1.93%
Chevron Corp. (CVX) $105.74 -1.41%
Boeing Co. (BA) $180.15 -1.40%
American Express Co. (AXP) $77.06 -1.37%
3M Co. (MMM) $195.40 -1.27%
Caterpillar Inc. (CAT) $101.08 -1.23%
United Technologies Corp. (UTX) $120.04 -1.12%
Apple Inc. (AAPL) $153.91 -1.00%

S&P 500 - Risers

Colgate-Palmolive Co. (CL) $74.21 3.67%
Target Corp. (TGT) $56.25 3.15%
Newmont Mining Corp. (NEM) $34.39 1.90%
Ventas Inc. (VTR) $65.98 1.48%
Nordstrom Inc. (JWN) $41.23 1.46%
Crown Castle International (CCI) $97.33 1.46%
Progressive Corp. (PGR) $40.66 1.35%
Simon Property Group Inc. (SPG) $155.97 1.19%
Extra Space Storage (EXR) $72.64 1.18%
HCP Inc. (HCP) $31.36 1.16%

S&P 500 - Fallers

Ball Corp (BLL) $40.33 -50.09%
Electronic Arts Inc. (EA) $107.27 -4.02%
Citizens Financial Group, Inc. (CFG) $35.73 -3.64%
Urban Outfitters Inc. (URBN) $19.80 -3.23%
CVS Health Corp (CVS) $76.68 -3.08%
Comerica Inc. (CMA) $69.17 -2.96%
United Rentals Inc. (URI) $108.43 -2.94%
TripAdvisor Inc. (TRIP) $44.28 -2.94%
Charles Schwab Corp. (SCHW) $39.50 -2.88%
Vulcan Materials Co. (VMC) $124.66 -2.86%

Nasdaq 100 - Risers

Dish Network Corp. (DISH) $64.22 3.13%
Vodafone Group Plc ADS (VOD) $29.06 1.30%
Incyte Corp. (INCY) $118.14 0.32%
Kraft Heinz Co. (KHC) $89.37 0.29%
Dollar Tree Inc (DLTR) $79.28 0.23%
Monster Beverage Corp (MNST) $46.91 0.21%
Tractor Supply Company (TSCO) $58.80 0.19%
Ross Stores Inc. (ROST) $61.73 0.16%
Starbucks Corp. (SBUX) $60.06 0.13%
Mondelez International Inc. (MDLZ) $45.48 0.05%

Nasdaq 100 - Fallers

Electronic Arts Inc. (EA) $108.13 -3.25%
Mattel Inc. (MAT) $22.06 -2.61%
Micron Technology Inc. (MU) $28.31 -2.46%
NetEase Inc. Ads (NTES) $283.28 -2.22%
Nvidia Corp. (NVDA) $134.28 -1.85%
Symantec Corp. (SYMC) $30.75 -1.82%
Walgreens Boots Alliance, Inc. (WBA) $83.07 -1.70%
Activision Blizzard Inc. (ATVI) $55.83 -1.67%
Western Digital Corp. (WDC) $87.54 -1.60%
Wynn Resorts Ltd. (WYNN) $126.10 -1.42%