Economics

U.S. Stocks Drop, Dollar Gains Amid Turkey Crisis: Markets Wrap

  • Turkish lira at record low even after Erdogan speech
  • Dollar climbs with Treasuries after consumer price data
Turkey Contagion Is Through Banking System Into Europe, MacDonald Says
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Stocks sold off around the world, with U.S. equities erasing what would’ve been a sixth weekly gain as Turkey’s economic crisis deepened. The dollar capped its best week since June as the lira sank to a record.

The S&P 500 Index slumped in thin trading, zapping gains that had taken it within striking distance of an all-time high. European and emerging-market equities bore the brunt of selling, with losses of more than 1 percent after the U.S. escalated a diplomatic row that tipped Turkey’s economy deeper into crisis.