Published: Sun, August 12, 2018
Economy | By

Turkey turmoil spills over to Wall St, shaves 200 pts off Dow

Turkey turmoil spills over to Wall St, shaves 200 pts off Dow

The Russell 2000 gained 13.43 points, or 0.8 percent.

The Dow is up 46.65 points, or 0.2 per cent.

The S&P 500 lost 7.07 points, or 0.2 percent.

While the geopolitical issues in Turkey were ravaging the U.S. capital markets the Turkish lira continued to devalue as U.S. President Donald Trump ratcheted up tariffs on aluminum and steel amid growing dissention between the two countries.Turkish President Recep Tayyip Erdogan went as far as asking citizens to convert their dollars and other foreign currencies, including gold to Turkish lira.

The Dow Jones Small-Cap Value TSM Index closed at 10,541.31 for a loss of -48.08 points or -0.45%.

The Russell 2000 is up 155.38 points, or 10.1 per cent. In corporate news, shares of Dropbox Inc. were lower after a second-quarter earnings report, which also included news that Chief Operating Officer Dennis Woodside was stepping down and a post-IPO lockup on shares would expire earlier than previously planned.

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

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

US market indexes saw a decline in Treasury yields Friday as concerns over Turkey's currency caused increased buying of open market Treasuries.

The Dow is up 790.01 points, or 3.2 per cent.

China's tit-for-tat response to the Trump administration's latest round of tariffs dragged down shares of trade-sensitive stocks such as Caterpillar and Boeing. The tech-heavy NASDAQ was also 0.6 percent lower, ending at 7,839.

Declining issues outnumbered advancing ones on the NYSE by a 2.12-to-1 ratio; on Nasdaq, a 1.47-to-1 ratio favored decliners. That compares with the 6.4 billion-share daily average for the past 20 trading days, according to Thomson Reuters data.

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