U.S. stock-index futures pointed to a lower open on Friday, tracking a global equity retreat fueled by the mounting currency crisis in Turkey, which raised the alarm for possible contagion into other markets.
What are early indications showing?
Futures on the Dow Jones Industrial Average YMU8, -0.49% fell 113 points, or 0.4%, to 25,378. Futures on the S&P 500 ESU8, -0.46% shed 13 points, or 0.5%, to 2,840, while futures on the Nasdaq-100 NQU8, -0.56% gave up 43 points, or 0.6%, to 7,432.
U.S. stocks closed mostly lower Thursday as weak energy and industrial shares weighed on the market, but the Nasdaq bucked the trend to end slightly higher. That marked its eighth straight session, its longest winning streak since October.
On Thursday, the Dow industrials DJIA, -0.29% fell 74.52 points, 0.3%, to 25,509.23, while the S&P 500 SPX, -0.14% shed 4.12 points, or 0.1%, to 2,853.58. The Nasdaq Composite Index COMP, +0.04% edged up 3.46 points to 7,891.78.
For the week, the Dow and S&P 500 have narrow weekly gains under threat, while the Nasdaq is on track for a weekly return nearing 1%.
What’s driving the market?
The steep decline in the Turkish lira comes after the European Central Bank expressed concern about the country, where President Recep Tayyip Erdogan was re-elected in a snap vote in June and whose growing power has raised questions about the independence of the country’s central bank.
The iShares MSCI Turkey ETF TUR, -3.87% plummeted 6.2% in the U.S. premarket. It has already plunged more than 42% thus far this year.
While U.S. companies have limited direct exposure to the country, the lira’s decline was the latest