A slump in the Turkish lira <TRYTOM=D3> worsened after U.S. President Donald Trump doubled tariffs on steel and aluminum imported from the country.
Investors fled to safe-haven assets, pushing the dollar higher and weighing on U.S. bond yields <US10YT=RR>.
“It was a classic risk-off move,” said Quincy Krosby, chief market strategist at Prudential Financial in New Jersey. “You worry about the collateral damage. You worry about the effects on Europe. You have banks losing because the 10-year U.S. Treasury (yield) came down.”
The S&P financial index fell 1.2 percent, among the biggest drags on the S&P 500.
The Dow Jones Industrial Average fell 196.09 points, or 0.77 percent, to 25,313.14, the S&P 500 lost 20.3 points, or 0.71 percent, to 2,833.28 and the Nasdaq Composite dropped 52.67 points, or 0.67 percent, to 7,839.11.
For the week, the Dow fell 0.6 percent and the S&P 500 dipped 0.3 percent. The Nasdaq gained 0.3 percent for the week after strong gains in some technology shares.