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Wall Street ends lower as Turkey woes hit banks

Reuters  |  NEW YORK 

By and James Thorne

NEW YORK (Reuters) - U.S. stocks slid on Friday as a deepening economic crisis in Turkey dragged on and triggered a move out of riskier assets.

and posted declines for the week following five straight weeks of gains, but the remains just 1.4 percent below its record high from Jan. 26.

A drop in added to the day's bearish tone. The S&P fell 0.8 percent, with down 2.6 percent after downgraded the stock to "sell."

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

A slump in the Turkish lira worsened after U.S. doubled tariffs on and aluminum imported from the country.

Investors fled to safe-haven assets, pushing the dollar <.DXY> higher and weighing on U.S. bond yields .

"It was a classic risk-off move," said Quincy Krosby, at in "You worry about the collateral damage. You worry about the effects on You have banks losing because the 10-year (yield) came down."

The index <.SPSY> fell 1.2 percent, among the biggest drags on the

The <.DJI> fell 196.09 points, or 0.77 percent, to 25,313.14, the S&P 500 <.SPX> lost 20.3 points, or 0.71 percent, to 2,833.28 and the Composite <.IXIC> dropped 52.67 points, or 0.67 percent, to 7,839.11.

For the week, fell 0.6 percent and the S&P 500 dipped 0.3 percent. The gained 0.3 percent for the week after strong gains in some

, the most global of the major U.S. banks, fell 2.4 percent. , and were also lower.

"Any time that there's any movement in currencies, financials tend to reap the contagion risks," said Jamie Cox, for in Richmond,

Shares of trade-sensitive companies also declined, including , 3M and Caterpillar , which were all down at least 1 percent.

shares ended up 0.9 percent. The number of shares sold short rebounded and are now higher than before on Tuesday proposed taking the private, according to data from and analytics firm

Data on Friday showed U.S. consumer prices rose in July and the underlying trend continued to strengthen, pointing to a steady increase in inflation pressures.

Declining issues outnumbered advancing ones on the NYSE by a 2.10-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored decliners.

The S&P 500 posted 12 new 52-week highs and 10 new lows; the Composite recorded 87 new highs and 102 new lows.

About 6.7 billion shares changing hands on U.S. exchanges. That compares with the 6.4 billion-share daily average for the past 20 trading days, according to data.

(Additional reporting by in Bengaluru; editing by and James Dalgleish)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, August 11 2018. 02:28 IST