Wall Street Ends Lower as Turkey Woes Hit Banks

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Wall Street Ends Lower as Turkey Woes Hit Banks[embedded content]

By Reuters

Aug. 10, 2018

NEW YORK — U.S. 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 and S&P 500 posted declines for the week following five straight weeks of gains, but the S&P 500 remains 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 fell 0.8 percent, with Intel down 2.6 percent after Goldman Sachs downgraded the stock to “sell.”

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

A slump in the Turkish lira <TRYTOM=D3> worsened after U.S. President Donald Trump doubled tariffs on steel and aluminum imported from the country.

Investors fled to safe-haven assets, pushing the dollar 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 (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 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, the most global of the major U.S. banks, fell 2.4 percent. JPMorgan, Wells Fargo and Bank of America were also lower.

“Any time that there’s any movement in currencies, financials

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