Stocks slipped on Friday as financial concerns developed in Turkey and Russia.
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The Turkish lira plunged to a fresh record low against the U.S. dollar Friday.
This came after a report that the European Central Bank is growing more concerned about exposure of regional banks to Turkey.
The lira is extending losses in part due to a diplomatic rift between Turkey and the U.S.
The ECB has concerns specifically about banks in Spain, Italy and France and their exposure to Turkey’s woes, the Financial Times reported Friday.
The recently announced additional sanctions against Russia, hit that country’s currency and stocks as the country braced for uncertainties over the Trump administration’s commitment to enforcement, according to the Wall Street Journal.
In economic data, a reading on inflation was in line with forecasts. The Labor Department said on Friday its Consumer Price Index advanced 0.2%, the bulk of which was due to a rise in the cost of shelter. CPI rose 0.1% in June. In the 12 months through July, the CPI increased 2.9%, matching the increase in June.
Stocks ended mostly flat on Thursday, with the Nasdaq and S&P 500 hovering near record levels as traders digested the continued stream of mostly positive earnings, while the long-running uncertainty over trade still weighed on markets.
The Dow Jones Industrial Average fell 74.52 points, or 0.29%, to 25,509.23. The S&P 500 was down 4.12 points, closing at 2,853.58. The Nasdaq Composite edged 3.46 points higher to 7,891.78.
Investors said renewed trade tensions sapped some of the market’s enthusiasm after China threatened Wednesday to slap new tariffs on various chemicals and medical