Stocks fall amid global financial concerns

By MarketsFOXBusiness

US markets at risk from Turkey's financial crisis?

Belpointe Chief Strategist David Nelson on the potential global market impact from Turkey's financial crisis and the future of Tesla.

Stocks slipped on Friday as financial concerns developed in Turkey and Russia.

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The Dow Jones Industrial Average dropped 196.09 points, or 0.77%, to 25,313.14. The S&P 500 was down 20.3 points, closing at 2,833.28. The Nasdaq Composite fell 52.67 points, or 0.67%, to 7,839.11.

The Turkish lira plunged to a fresh record low against the U.S. dollar Friday.

This came after a report that the European Central Bank is growing more concerned about exposure of regional banks to Turkey.

TickerSecurityLastChange%Chg
I:DJIDOW JONES AVERAGES25758.69+89.37+0.35%
SP500S&P 5002857.05+6.92+0.24%
I:COMPNASDAQ COMPOSITE INDEX7821.0061+4.68+0.06%

The lira is extending losses in part due to a diplomatic rift between Turkey and the U.S.

The ECB has concerns specifically about banks in Spain, Italy and France and their exposure to Turkey's woes, the Financial Times reported Friday.

The recently announced additional sanctions against Russia, hit that country’s currency and stocks as the country braced for uncertainties over the Trump administration’s commitment to enforcement, according to the Wall Street Journal.

In economic data, a reading on inflation was in line with forecasts. The Labor Department said on Friday its Consumer Price Index advanced 0.2%, the bulk of which was due to a rise in the cost of shelter. CPI rose 0.1% in June. In the 12 months through July, the CPI increased 2.9%, matching the increase in June.

Stocks ended mostly flat on Thursday, with the Nasdaq and S&P 500 hovering near record levels as traders digested the continued stream of mostly positive earnings, while the long-running uncertainty over trade still weighed on markets.

FOX Business’ Leia Klingel contributed to this article.

 

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