US STOCKS-Turkey turmoil rattles Wall St, banks take a knock

Reuters

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    * Trump doubles tariffs on Turkish steel and aluminum 
    * Turkish lira falls as much as 18 pct
    * Intel falls after downgrade; pressures chip sector
    * Indexes down: Dow 0.69 pct, S&P 0.52 pct, Nasdaq 0.35 pct 

 (Adds comment, details; updates prices)
    By Amy Caren Daniel
    Aug 10 (Reuters) - U.S stocks fell on Friday as a deepening
crisis in Turkey dragged on bank stocks and triggered fears that
it could spread to other global economies. 
   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. urn:newsml:reuters.com:*:nL1N1V10IN    
    "The currency crisis is actually a banking crisis as Turkey
owes so much money to so many different banks, that they risk a
potential contagion," said David McKnight, adviser at David
McKnight & Co in Puerto Rico.
    "As long as Trump is going to be willy-nilly with tariffs,
there's going to be a lot of uncertainty and markets thrive on
certainty."
    Citigroup  C.N , the most global of the major U.S. banks,
fell 2.3 percent. JPMorgan  JPM.N , Wells Fargo  WFC.N  and Bank
of America  BAC.N  were all down about 1 percent.
    Investors fled to safe-haven assets, pushing the dollar to a
13-month high and weighing on U.S. bond yields that slipped to a
three-week low.  US/ 
    Shares of trade-sensitive companies declined, with  Boeing
 BA.N , 3M  MMM.N  and Caterpillar  CAT.N  down between 2.3
percent and 4 percent.
     At 12:41 p.m. ET, the Dow Jones Industrial Average  .DJI 
was down 175.04 points, or 0.69 percent, at 25,334.19, the S&P
500  .SPX  was down 14.98 points, or 0.52 percent, at 2,838.60
and the Nasdaq Composite  .IXIC  was down 27.87 points, or 0.35
percent, at 7,863.91.
    All the 11 major S&P sectors were trading in the red.
    "Today's impact has set the markets in a temporary risk-off
sentiment," said Matt Forester, chief investment officer of BNY
Mellon's Lockwood Advisors.
    S&P technology sector's  .SPLRCT  0.5 percent fall was led
by chipmakers. Intel  INTC.O  dropped 2.3 percent after Goldman
Sachs downgraded the stock to "sell".
    Microchip  MCHP.O  shares fell 9.9 percent, among the
biggest decliners on the S&P, after disappointing second-quarter
revenue forecast.
    Data on Friday showed U.S. consumer prices rose in July and
the underlying trend continued to strengthen, pointing to a
steady increase in inflation pressures.  urn:newsml:reuters.com:*:nLNSAJEEIC
    Declining issues outnumbered advancers for a 1.63-to-1 ratio
on the NYSE and for a 1.06-to-1 ratio on the Nasdaq.
    The S&P index recorded 12 new 52-week highs and 10 new lows,
while the Nasdaq recorded 73 new highs and 78 new lows.

 (Reporting by Amy Caren Daniel in Bengaluru; Editing by Anil
D'Silva)
 ((Amy.CarenDaniel@thomsonreuters.com ; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 9250 ; Reuters Messaging:
Amy.CarenDaniel.thomsonreuters.com@reuters.net))

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