Stocks fall emphatically over Turkish crisis

By Baystreet Market Updates

U.S. stocks fell on Wednesday as lingering concerns over Turkey’s financial crisis weighed on investor sentiment. Declines in tech shares and banks also pressured the broader indexes.

The Dow Jones Industrial Average remained negative 260.46 points, or 1%, to 25,039.46

The S&P 500 slouched 30.62 points, or 1.1%, to 2,809.34

The NASDAQ fell 112.58 points, or 1.6%, to 7,748.31

The Dow and NASDAQ both broke below their 50-day moving averages, while the S&P 500 was approaching it.

Bank shares fell broadly as Bank of America and Citigroup both dropped more than 1.5%. J.P. Morgan Chase also fell 0.9%. The tech sector also dropped more than 1%.

Tech shares contributed to the decline as Facebook, Apple, Netflix and Alphabet all traded lower. The move down in tech comes after China’s Tencent reported its slowest revenue growth rate since 2015. U.S.-listed shares of the Chinese internet giant dropped about 6.6%.

Energy shares fell 3% and were the worst performers in the S&P 500 as U.S. crude dropped 3.2% after the Energy Information Administration said U.S. stockpiles rose by 6.8 million barrels.

Earnings season continued on Wednesday as Macy’s reported a better-than-expected quarterly profit and sales. The company’s stock fell more than 12.5%, however, as the company struggles to grow sales.

Meanwhile, shares of General Electric briefly traded below $12 a share for the first time since 2009 as investors fret over the company’s turnaround plan.

Retail sales in the U.S. rose more than expected last month, gaining 0.5% in July versus economists’ estimates of 0.1%. The U.S. Commerce Department’s report also showed a year-over-year increase of 6.4%.

A Turkish regulator said Wednesday it was limiting banks’ currency swap transactions. The move is likely aimed at curbing short selling against the lira, which has recently taken a beating.

The Turkish lira fell to a record low earlier this week as global investors fear Turkey’s economic troubles could spell trouble for other economies around the world. Last month, Turkey’s inflation rate hit 16%, well above the central bank’s 5% target.

Prices for the benchmark for the 10-year U.S.Treasury spiked, dropping yields to 2.86% from Tuesday’s 2.9%. Treasury prices and yields move in opposite directions.

Oil prices stumbled $2.15 at $64.89U.S. a barrel.

Gold prices slid $16.80 to $1,183.90U.S. an ounce.

This article provided by NewsEdge.