Wall St ends lower on Turkey woes

US stocks slid on Friday as a deepening economic crisis in Turkey dragged on bank shares and triggered a move out of riskier assets.

The Dow Jones Industrial Average and S&P 500 posted declines for the week following five straight weeks of gains, but the S&P 500 remained just 1.4 percent below its record high from Jan. 26.

A drop in technology shares added to the day’s bearish tone.

The S&P technology index edged down 0.8 percent, with Intel Corp down 2.6 percent after Goldman Sachs Group Inc downgraded the stock to “sell.”

Microchip Technology Inc shares fell 10.9 percent after a disappointing second-quarter revenue forecast.

A slump in the Turkish lira worsened after US President Donald Trump doubled tariffs on steel and aluminum imported from the country.

Investors fled to safe-haven assets, pushing the US dollar higher and weighing on US bond yields.

“It was a classic risk-off move,” said Quincy Krosby, chief market strategist at Prudential Financial Inc in New Jersey. “You worry about the collateral damage. You worry about the effects on Europe. You have banks losing because the 10-year US Treasury [yield] came down.”

The S&P financial index fell 1.2 percent, among the biggest drags on the S&P 500.

The Dow Jones Industrial Average on Friday fell 196.09 points, or 0.77 percent, to 25,313.14, the S&P 500 lost 20.3 points, or 0.71 percent, to 2,833.28 and the NASDAQ Composite dropped 52.67 points, or 0.67 percent, to 7,839.11.

For the week, the Dow fell 0.6 percent and the S&P 500 dipped 0.3 percent.

The NASDAQ gained 0.3 percent for the week after strong gains in some technology shares.

Citigroup Inc, the most global of the major US banks, fell 2.4 percent. JPMorgan Chase & Co, Wells Fargo & Co and Bank of America Corp were also lower.

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