NEW YORK (Aug 10): The Dow Jones Industrial Average fell more than 200 points on Friday, amid a widespread selloff in global stocks as the Turkish lira tumbled due to concerns over the country's economy and a deepening rift with the United States.
President Donald Trump doubled tariffs on aluminum and steel imports from Turkey, deepening the currency's losses and raising concerns that the crisis could weigh on other economies.
"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 New York, wrote in a note.
"This will eventually matter greatly to U.S. markets."
Investors fled to safe-haven assets, with the dollar rising to a 13-month high and U.S. bond yields slipping to a three-week low.
Ten of the 11 major S&P sectors were lower, with bank stocks taking the biggest hit.
"Banks are leverage plays on the global economy. Anytime there's a sniff of contagion they will be weak," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
JPMorgan, Wells Fargo and Bank of America fell more than 1%, weighing the most on the benchmark S&P 500.
At 9:48 a.m. EDT the Dow Jones Industrial Average was down 158.88 points or 0.62% at 25,350.35; the S&P 500 was down 13.35 points or 0.47% at 2,840.23; and the Nasdaq Composite was down 31.69 points or 0.40% at 7,860.09.
S&P technology sector's 0.42% fall was led by chipmakers.
Intel dropped 2.6% after Goldman Sachs downgraded the stock to "sell". Micron also fell 1.1%.
Microchip's shares fell 10.5%, the biggest decliner on the S&P, after it forecast disappointing second-quarter revenue.
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 advancers for a 2.34-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.85-to-1 ratio on the Nasdaq.
The S&P index recorded 4 new 52-week highs and 7 new lows, while the Nasdaq recorded 33 new highs and 45 new lows.