US stocks slightly weaker during opening trade, geopolitical worries weigh

Major US equity indices witnessed a slightly weaker opening on Wednesday as investors remained cautious and refrained from buying risky assets - like equities, amid mounting geopolitical tensions.

During opening hour of trade, the Dow Jones Industrial Average was down around 30-points to 20,620, while the broader S&P 500 Index dropped over 4-points to 2,350. Meanwhile, tech-heavy Nasdaq Composite Index slipped around 4-points to 5,862.

Investors’ sentiment has been dented by heightened geopolitical worries, which further escalated after the US President Donald Trump pressed China for a peaceful resolution with North Korea. It is worth mentioning that N. Korea has warned to launch a nuclear attack if provoked by the US.

Adding to this, uncertainty surrounding the first-round of French Presidential election has also been weighing on investors' sentiment and collaborated to the weaker sentiment around global equities.

Meanwhile, rising crude oil prices remains supportive for the energy shares and has limited any sharp downslide, at least for the time being. However, with the Volatility Index (VIX) surging to its highest level since November, investors might be prompted to lock-in some profits that might eventually lead to a fresh round of near-term selling pressure in the markets.