Stocks close lower as financial crisis in Turkey spooks markets
Stocks fell Friday as geopolitical concerns pushed the Turkish lira to a record low against the dollar and rattled investors.
The Dow ended 196 points lower after dropping more than 250 points at session lows. The index erased its gains for August and posted a three-day losing streak. The S&P 500 fell 0.7 percent as financials lagged. The Nasdaq also pulled back nearly 0.7 percent.
Bank shares led the way lower in the U.S. as Bank of America, Goldman Sachs and Morgan Stanley all dropped more than 1 percent. Tech shares also fell as Facebook, Alphabet and Amazon all declined.
"This is a classic, instinctive reaction in the market," said Quincy Krosby, a chief market strategist at Prudential Financial. "Stocks are down while . . . Treasurys are getting a bid."
"The currency issue in emerging markets, in Turkey, is nothing new. This is just exacerbated," Krosby added. She also noted that global central banks could take action to prevent the situation from getting worse. "Historically, you've seen central banks act to ease these types of situations. The goal for them is to minimize collateral damage."
The lira briefly fell 20 percent after President Donald Trump authorized the doubling of metals tariffs on Turkey.
https://www.msn.com/en-us/money/markets/stocks-close-lower-as-financial-crisis-in-turkey-spooks-markets/ar-BBLK3az?li=BBnbfcN
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