Published: Sun, August 12, 2018
Business | By Kate Woods

Futures drop as Turkey turmoil rattles global markets

Futures drop as Turkey turmoil rattles global markets

The S&P 500 plunged 20.30 points, or 0.7 per cent, to 2,833.28.

"It was a classic risk-off move", said Quincy Krosby, chief market strategist at Prudential Financial in New Jersey. The Nasdaq Composite dropped 57.07 points, or 0.72 per cent, to 7,834.71 at the opening bell.

The dollar rose against most major currencies as investors bet global trade tensions and a robust USA economy would continue to support the currency.

At 8:44 a.m. ET, Dow e-minis were up 25 points, or 0.1 percent.

Seven of the 11 main S&P sectors were higher.

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The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting that a strong economy was helping the labor market.

"This will eventually matter greatly to USA markets".

The dollar index rose 0.44 percent, with the euro down 0.52 percent to $1.1550.

Data from U.S. Labor Department is expected to show that the consumer price index rose 0.2 percent in July, after rising 0.1 percent in June.

The energy sector was the biggest loser, dragged down by Occidental Petroleum, the largest Permian producer, which boosted its capital expenditure. That was a drop of 0.7 percent from Thursday's close.

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Futures implied the benchmark index would open at 2,858.20, about 15 points shy of the record it hit on January 26.

Shares of trade-sensitive companies declined, with Boeing, 3M and Caterpillar down between 2.3 percent and 4 percent.

The technology sector has been at the center of a sharp recovery in USA stocks since a market rout in February.

Chip stocks fell after Morgan Stanley downgraded the USA semiconductor industry. Micron (MU.O), Applied Materials (AMAT.O) and ON Semiconductor (ON.O) fell between 1.8 percent and 2.4 percent.

The Canadian dollar averaged 76.26 cents USA, down 0.43 of a U.S. cent.

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Advancing issues outnumbered decliners by a 1.68-to-1 ratio on the NYSE and by a 1.58-to-1 ratio on the Nasdaq.

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