Economics

U.S. Stocks Fall, Dollar Gains Amid Turkey Fears: Markets Wrap

  • Greenback hits highest since June 2017, EM currencies slide
  • Turkish lira tumbles despite central bank’s liquidity boost
Burkhardt Varnholt of Credit Suisse calls the Turkey situation "isolated," but says investors need to be cautious.(Source: Bloomberg)
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U.S. stocks were lower Monday but the contagion from the economic crisis in Turkey remained largely confined to emerging-market assets. The dollar surged to its highest in 14 months, punishing commodities from crude to metals.

The S&P 500 Index declined for a fourth straight day, its longest losing streak in five months, due to weakness in energy, materials and financial firms. Turkey’s lira sank for a fourth day, hitting a new low. Emerging-market equities tumbled more than 2 percent and currencies dropped 1 percent, with South Africa’s rand falling to the lowest since June 2016. European banks dragged down stocks in the region, though equity measures closed well above the day’s lows.