Markets Now: Dow Drops 105 Points as Turkey Finally Matters

Turkish lira update market drop

Turkish lira Dow Jones drops 200 points after Turkey currency fears

Investors were anxious about the financial stability of Turkey, and how it might affect the global financial system.

The euro was down 0.5% to $1.1463 and the dollar hit a one-year high as investors looked for safe assets, before falling slightly.

The Canadian dollar averaged 76.26 cents USA, down 0.43 of a USA cent.

Shares of Apple rose 1 percent, while those of Amazon were up 0.5 percent and Microsoft 0.3 percent.

Chip stocks fell after Morgan Stanley downgraded the US semiconductor industry saying upside to estimates is hard to come by.

The Dow is up 593.92 points, or 2.4 per cent.

At 12:41 p.m. ET, the Dow Jones Industrial Average was down 175.04 points, or 0.69 percent, at 25,334.19, the S&P 500 was down 14.98 points, or 0.52 percent, at 2,838.60 and the Nasdaq Composite was down 27.87 points, or 0.35 percent, at 7,863.91.

The S&P financial index fell 1.4 percent, among the biggest drags on the S&P 500.




Tesla Inc's (TSLA.O) shares also fell to a two-day low and wiped out all of the gains fueled by Chief Executive Elon Musk's recent tweet announcing a plan to take the company private.

For the week, the Dow fell 0.6 per cent and the S&P 500 dipped 0.3 per cent.

"Any time that there's any movement in currencies, financials tend to reap the contagion risks", said Jamie Cox, managing partner for Harris Financial Group in Richmond, Virginia.

Shares of trade-sensitive companies declined, with Boeing, 3M and Caterpillar down between 2.3 percent and 4 percent.

S&P technology sector's 0.5 percent fall was led by chipmakers.

The Consumer Price Index reported an annual increase of 2.9%.

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. That compares with the 6.3 billion daily average for the past 20 trading days, according to Thomson Reuters data.

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