Dow down 200, emerging markets crashing on US-Turkey geopolitical concerns

Dow down 200, emerging markets crashing on US-Turkey geopolitical concerns

Dow down 200, emerging markets crashing on US-Turkey geopolitical concerns

The S&P index recorded 20 new 52-week highs and one new low, while the Nasdaq recorded 44 new highs and 24 new lows.

Stocks in the USA and Europe skidded Friday as investors anxious about the financial stability of Turkey and how it might affect the global banking system.

The Russell 2000 gained 13.43 points, or 0.8 per cent.

The Dow Jones Industrial Average fell 108.04 points, or 0.42 per cent, at the open to 25,401.19.

The Dow Jones Industrial Average was the only laggard among the three major indexes.

Shares of Apple rose 0.8 percent, while those of Amazon AMZN.O were up 0.6 percent.

In small-caps, the Russell 2000 closed at 1,686.75 for a loss of -4.14 points or -0.24%.

Second quarter earnings are expected to increase 23.5 percent from the same period past year.

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Bookings Holdings fell 5.9 percent and weighed the most on the S&P and the Nasdaq after it forecast third-quarter profit below expectations.

The Turkish lira briefly dropped almost 20 percent against the dollar after US President Donald Trump tweeted that he has authorized the doubling of tariffs on steel and aluminum imports from Turkey.

"Investors are more comfortable with FAANG stocks and technology as far as valuations go, and these stocks have higher margins", Tom White, chief market strategist at TradeWise Advisors, in Chicago, Illinois, told Reuters. Tech stocks have been at the center of a sharp recovery in the S&P since a market rout in February, driving the index close to its record high.

The Dow is up 790.01 points, or 3.2 per cent.

Rite Aid fell 10.9 percent after the drug store chain and USA grocer Albertsons Cos agreed to terminate their merger agreement.

Shares of trade-sensitive companies also declined, including Boeing, 3M and Caterpillar, which were all down at least 1.4 percent. Tech shares also fell as Facebook, Alphabet and Amazon all declined.

Declining issues outnumbered advancing ones on the NYSE by a 2.10-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favoured decliners.

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