Markets Now: Dow Drops 105 Points as Turkey Finally Matters

Gladys Abbott
August 12, 2018

The S&P 500 fell 0.7 percent to close at 2,833.28 as financials and materials lagged.

"It was a classic risk-off move", said Quincy Krosby, chief market strategist at Prudential Financial in New Jersey.

The Nasdaq Composite Index increased 4.66 points, or 0.06 per cent, to 7,888.33.

The S&P 500 is up 159.67 points, or 6 percent.

The dollar rose against most major currencies as investors bet global trade tensions and a robust US economy would continue to support the currency.

Shares of Apple (AAPL.O) rose 0.8 percent, while those of Amazon (AMZN.O) were up 0.6 percent and Microsoft (MSFT.O) 0.4 percent.

The number of Americans filing for unemployment benefits unexpectedly fell last week, a Labor Department report showed. The pan-European FTSEurofirst 300 index of leading regional shares closed up 0.02 percent, as did the blue-chip EURO STOXX 50.

"This will eventually matter greatly to US markets".

The Dow Jones Industrial Average shed 196.09 points, or 0.8 per cent, to 25,313.14.

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The S&P 500 and Dow had ended down slightly on Thursday as gains in Apple and Amazon were offset by losses in energy and financial shares.

The energy sector was the biggest loser, dragged down by Occidental Petroleum, the largest Permian producer, which boosted its capital expenditure.

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

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.

"You have banks losing because the 10-year U.S. Treasury came down".

Chip stocks fell after Morgan Stanley downgraded the U.S. semiconductor industry.

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.

Meanwhile, concerns over escalating trade conflict between the US and China weighed on the trade-sensitive S&P 500 Industrials Index, which ended up losing 0.57% on the day.

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