Turkey turmoil spills over to Wall St, shaves 200 pts off Dow

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The tech-heavy index .IXIC was up 0.31 percent at 7,913.03, barely 0.25 percent away from hitting an all-time high.

US stocks slid on Friday as a deepening economic crisis in Turkey dragged on bank shares and triggered a move out of riskier assets.

The VIX Volatility Index was higher at 13.20 for a gain of 1.93 points or 17.13%.

The geopolitical turmoil in Turkey is certainly making waves across the global economies, particularly in the United States where the Dow Jones Industrial Average fell over 200 points today.

Want to know why the Dow Jones Industrial Average is doing what it's doing?

The Russell 2000 index of smaller-company stocks fell 4.08 points, or 0.2 per cent, to 1,686.80.

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.

Second quarter earnings are expected to increase 23.5 percent from the same period previous year. The pan-European FTSEurofirst 300 index of leading regional shares closed up 0.02 percent, as did the blue-chip EURO STOXX 50.

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At the heart of the crisis was a slump in the Turkish lira, which worsened after President Donald Trump doubled tariffs on steel and aluminum imported from the country.

"Problems in emerging markets are more important than ever because of the global growth engine that emerging markets have become", Peter Cecchini, chief market strategist at Cantor Fitzgerald in NY, wrote in a note.

The S&P 500 opened lower by 13.94 points, or 0.49 per cent, at 2,839.64.

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

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

Shares of trade-sensitive companies also declined, including Boeing, 3M and Caterpillar, which were all down at least 1 per cent.

Declining issues outnumbered advancers for a 2.34-to-1 ratio on the NYSE. Excluding the energy sector, the earnings growth estimate declines to 20.4 percent, according to Thomson Reuters.

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