(Reuters) - The Dow Jones Industrial Average fell more than 200 points on Friday amid a widespread selloff in global stocks as the Turkish lira tumbled due to concerns over the country’s economy and a deepening rift with the United States.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 24, 2018. REUTERS/Brendan McDermid
President Donald Trump doubled tariffs on aluminum and steel imports from Turkey, deepening the currency’s losses and raising concerns that the crisis could weigh on other economies.
“Problems in emerging markets are more important than ever because of the global growth engine that emerging markets have become,” Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York, wrote in a note.
“This will eventually matter greatly to U.S. markets.”
Investors fled to safe-haven assets, with the dollar rising to a 13-month high and U.S. bond yields slipping to a three-week low. [US/]
Ten of the 11 major S&P sectors were lower, with bank stocks .SPXBK taking the biggest hit.
“Banks are leverage plays on the global economy. Anytime there’s a sniff of contagion they will be weak,” said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
JPMorgan (JPM.N), Wells Fargo (WFC.N) and Bank of America (BAC.N) fell more than 1 percent, weighing the most on the benchmark S&P 500.
At 9:48 a.m. EDT the Dow Jones Industrial Average .DJI was down 158.88 points, or 0.62 percent, at 25,350.35, the S&P 500 .SPX was down 13.35 points, or 0.47 percent, at 2,840.23 and the Nasdaq Composite .IXIC was down 31.69 points, or 0.40 percent, at 7,860.09.
S&P technology sector’s .SPLRCT 0.42
