NEW YORK (Reuters) – U.S. stocks slid on Friday as a deepening economic crisis in Turkey dragged on bank stocks and triggered fears that it could spread to other global economies.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 24, 2018. REUTERS/Brendan McDermid
A drop in technology shares added to the bearish tone. The S&P technology index .SPLRCT fell 1 percent, with Intel (INTC.O) down 2.8 percent after Goldman Sachs downgraded the stock to “sell”.
Microchip Technology (MCHP.O) shares fell 11.6 percent after disappointing second-quarter revenue forecast.
A slump in the Turkish lira TRYTOM=D3 worsened after President Donald Trump doubled tariffs on steel and aluminum imported from the country.
Investors fled to safe-haven assets, pushing the dollar .DXY higher and weighing on U.S. bond yields US10YT=RR.
“It was a classic risk-off move,” said Quincy Krosby, chief market strategist at Prudential Financial in New Jersey. “You worry about the collateral damage. You worry about the effects on Europe. You have banks losing because the 10-year U.S. Treasury came down.”
The S&P financial index .SPSY fell 1.4 percent, among the biggest drags on the S&P 500. Citigroup (C.N), the most global of the major U.S. banks, fell 2.7 percent. JPMorgan (JPM.N), Wells Fargo (WFC.N) and Bank of America (BAC.N) were also lower.
At 2:47 p.m. (1847 GMT), the Dow Jones Industrial Average .DJI was down 270.25 points, or 1.06 percent, to 25,238.98, the S&P 500 .SPX had lost 25.21 points, or 0.88 percent, to 2,828.37 and the Nasdaq Composite .IXIC had dropped 65.17 points, or 0.83 percent, to 7,826.61.
Data on Friday showed U.S. consumer prices rose in July and the underlying trend continued to strengthen, pointing to a steady increase in inflation pressures.
Declining issues outnumbered advancing ones on the NYSE by a 2.12-to-1 ratio; on Nasdaq, a 1.47-to-1 ratio favored decliners.
The S&P 500 posted 12 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 82 new highs and 88 new lows.
Additional reporting by James Thorne in New York and Amy Caren Daniel in Bengaluru; Editing by Anil D’Silva and James Dalgleish
more recommended stories
Image sharing website Pinterest files for IPO
FILE PHOTO: A Pinterest banner hangs.
Boeing Co wins $4.1 billion U.S. defense contract: Pentagon
FILE PHOTO: Company logo and trading.
U.S. lawmaker urges FAA, Boeing employees to disclose details on 737 MAX approval
FILE PHOTO: An aerial photo shows.
Musk’s lawyers say U.S. SEC has not met heavy burden to show contempt
FILE PHOTO: SpaceX founder Elon Musk.
Wall Street tumbles on global economic slowdown fears
NEW YORK (Reuters) – Wall Street.
Some Boeing 737 MAX orders in jeopardy, U.S. pilots try software fix
JAKARTA/CHICAGO (Reuters) – Indonesian airline Garuda.
SpiceJet seeks planes from other sources after India grounds 737 MAX fleet
A man looks out through a.
GM to announce $300 million investment in Orion EV/AV plant
(Reuters) – General Motors Co will.
The Fed is prodding Americans to buy more on credit
WASHINGTON (Reuters) – The Federal Reserve’s.
Beneath Fed’s positive spin, an embrace of a tepid future
SAN FRANCISCO/WASHINGTON (Reuters) – Federal Reserve.