Breaking News
0

Stocks - S&P 500 Closes Lower as Turkey Turmoil Sends Tremors Across Markets

Stock MarketsAug 13, 2018 04:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Traders flee risk assets Turkey financial crisis worries deepen

Investing.com – The S&P closed lower on Monday as fears over a financial crisis in Turkey intensified and energy stocks slumped on falling oil prices.

The Dow Jones Industrial Average fell about 0.50%. The S&P 500 fell 0.39%, while the Nasdaq Composite fell about 0.25%.

The economic turmoil in Turkey continued, stoking fears about a spill over into emerging markets, which would hurt both global growth and sentiment for riskier assets like stocks.

The TRY/USD slumped more than 8% as investors were largely unimpressed by the Turkish central bank's efforts to stabilize the lira and restore confidence in the economy.

A row between the United States and Turkey deepened last week as the Trump administration doubled steel tariffs on Turkey and vowed to pile pressure on Ankara over the fate of an American pastor, Andrew Brunson, who faces terrorism charges in Turkey.

The reverberations of a plunging lira swept through the markets, hitting financials, mostly banks, which some fear are somewhat vulnerable to a collapse in Turkey's economy, despite analysts claiming the risk of contagion is limited.

Shares of JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) slumped, weighing on the major averages.

"There is little evidence yet of contagion," said Jim Strugger, a derivatives strategist at MKM Partners. "Anecdotally, it's worth pointing out that few clients seem particularly concerned about potential contagion emanating from Turkey."

Weakness in energy stocks also weighed on the broader averages as oil prices extended declines from last week to settle lower on concerns about global oil-demand growth.

On the New York Mercantile Exchange, crude futures for September delivery fell 43 cents settle at $67.20 a barrel.

Tech stocks, meanwhile, struggled to extend gains from last week, despite a rise in shares of Advanced Micro Devices (NASDAQ:AMD) and Twitter (NYSE:TWTR).

Twitter Inc (NYSE:TWTR) stock closed 2.5% higher after famed short seller Citron Research reversed its earlier negative call on the social media company and slapped a $52 price target on its shares, citing privacy concerns were in the "rear view," and execution was seen on all fronts.

In other corporate news, Tesla (NASDAQ:TSLA) CEO Elon Musk said his claim last week that the necessary funding had been secured was based on repeated and ongoing conversations with the Saudi Arabian sovereign wealth fund.

"Going back almost two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private," Musk said in a blog post published Monday.

Elsewhere, Harley-Davidson (NYSE:HOG) stock tumbled 4% after President Trump said in a tweet Sunday, it's "great" that consumers might boycott Harley-Davidson if it moves part of its production overseas.

Top S&P 500 Gainers and Losers Today:

Nielsen Holdings (NYSE:NLSN), Sysco (NYSE:SYY), AMD (NASDAQ:AMD) were among the top S&P 500 gainers for the session.

Lennar (NYSE:LEN), Harley-Davidson (NYSE:HOG) and PulteGroup (NYSE:PHM) were among the worst S&P 500 performers of the session.

Stocks - S&P 500 Closes Lower as Turkey Turmoil Sends Tremors Across Markets
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Bi Ba
Bi Ba Aug 13, 2018 7:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dont
Kevin Ryan
Kevin Ryan Aug 13, 2018 6:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The stock market will drop more. Banks and technology stocks will drop the most. The yield curve is about to invert sending bank stocks to new 52 week lows. Turkey, China, and currency wars are just a few headlines. They are also calling for impeachment of Trump which would collapse the stock market. Might be best to sell bonds and stocks and get some cash ready for a correction
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email