U.S. stocks dropped on Friday, triggered by fears over the sell-off in the Turkish lira after U.S. President Donald Trump said he had approved the doubling of metals tariffs against Turkey on Friday. The lira briefly slumped 20 percent against the dollar after the announcement.
The Turkish currency ended the last session down by some 16 percent and extended its declines early on Monday, edging past the 7.00 level to the dollar before paring some losses to last trade at 6.8248.
Markets in Europe were also been affected by the ongoing turmoil in Turkey as investors were concerned about the contagion effect of lira’s steep fall on banks in the region. The pan-European Stoxx 600 fell more than 1 percent in the end of the day.
The Dow Jones Industrial Average declined 0.77 percent, or 196.09 points, to close at 25,313.14 and also erasing its gains for the month. The S&P 500 eased 0.71 percent to end at 2,833.28 and the Nasdaq Composite finished the day 0.67 percent lower at 7,839.11, snapping an eight-day winning streak.
The safe-haven yen was firmer amid the uncertainty, with the currency trading at 110.59 to the dollar at 7:00 a.m. HK/SIN.
On the commodities front, oil prices settled higher in the last session as U.S. sanctions on Iran appeared set to impact supply in markets. Brent crude futures added 74 cents to settle at $72.96 per barrel and U.S. West Texas Intermediate crude was up 82 cents at $67.63 per barrel.