U.S. Stocks Drop, Dollar Gains Amid Turkey Crisis: Markets Wrap
Stocks sold off around the world, with U.S. equities erasing what would’ve been a sixth weekly gain as Turkey’s economic crisis deepened. The dollar capped its best week since June as the lira sank to a record.
The S&P 500 Index slumped in thin trading, zapping gains that had taken it within striking distance of an all-time high. European and emerging-market equities bore the brunt of selling, with losses of more than 1 percent after the U.S. escalated a diplomatic row that tipped Turkey’s economy deeper into crisis.
- The S&P 500 fell 0.7 percent as of 4 p.m. in New York. It dropped 0.25 percent on the week.
- The domestically focused Russell 2000 Index slipped 0.3 percent.
- The Stoxx Europe 600 Index sank 1.1 percent.
- Germany’s DAX Index lost 2 percent.
- The MSCI Emerging Market Index fell 1.7 percent.
- The MSCI Asia Pacific Index dipped 1 percent.
- The Bloomberg Dollar Spot Index jumped 0.7 percent to the highest in more than six weeks on the largest climb in a month.
- The euro sank 1 percent to $1.1410, the weakest in 13 months on the biggest dip in more than two weeks.
- The Japanese yen climbed 0.2 percent to 110.852 per dollar.
- The Turkish lira decreased 14 percent to 6.46 per dollar, the weakest on record with the largest tumble in more than 17 years.
- The yield on 10-year Treasuries sank five basis points to 2.87 percent.
- Turkey’s 10-year surged 15 basis points to 20.34 percent.
- Germany’s 10-year yield fell four basis points to 0.33 percent.
- Italy’s 10-year yield increased nine basis points to 2.986 percent.
- West Texas Intermediate crude increased 1.2 percent to $67.63 a barrel.
- Gold futures decreased 0.1 percent to $1,219.20 an ounce.
- Corn, cotton and wheat futures slumped more than 2.3 percent.
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