Turkey turmoil spills over to Wall St, shaves 200 pts off Dow
- Author: Anthony Vega Aug 12, 2018,
Aug 12, 2018, 16:13
USA stock-index benchmarks slumped to start Friday trade, tracking a global equity retreat fueled by a mounting currency crisis in Turkey, which raised the alarm for possible contagion into other markets.
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 per cent below its record high from January 26.
The Dow Jones Industrial Average decreased 74.52 points, or 0.29 percent, to 25,509.23.
Meanwhile, concerns over escalating trade conflict between the US and China weighed on the trade-sensitive S&P 500 Industrials Index, which ended up losing 0.57% on the day.
Lam Research, Micron, Applied Materials and ON Semiconductor fell between 1 percent and 4.7 percent.
The Dow slid 149.44 points, or 0.6 percent.
Microchip Technology shares fell 10.9 per cent after a disappointing second-quarter revenue forecast.
The S&P 500 opened lower by 13.94 points, or 0.49 per cent, at 2,839.64.
The S&P 500 is up 179.97 points, or 6.7 percent.
"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 NY, wrote in a note.
Rite Aid (RAD.N) fell 10.6 percent and was the most actively traded stock after the drug store chain and USA grocer Albertsons Cos ABS.N agreed to terminate their merger agreement.
Advancing issues outnumbered decliners by a 1.68-to-1 ratio on the NYSE and by a 1.58-to-1 ratio on the Nasdaq.
About 6.7 billion shares changing hands on USA exchanges.