Investing.com - Financial stocks were mostly lower midday, as investors fretted about the plunge in the Turkish lira and its impact on the global banking system.
The S&P Finance Sector index fell about 1.2% at 11:25 AM ET (15:25 GMT).
The lira tumbled double digits to a fresh historic low against the U.S. dollar after President Donald Trump announced he was doubling tariffs on steel and aluminum for Turkey. The two countries are locked in a dispute over Turkey’s detention of a U.S. pastor.
USD/TRY surged about 15% midday, not far from an all-time high of 6.6170 earlier in the session.
Earlier on Friday, Turkish President Tayyip Erdogan urged Turks to exchange gold and hard currency into lira, framing the crisis as a "national battle" against economic enemies.
The currency’s decline raised fears about how much exposure banks have to Turkey. European banks have the most exposure, but U.S. banks are owed about $18 billion, according to the Bank of International Settlements.
Elsewhere, semiconductor and semiconductor equipment stocks struggled after Microchip Technology (NASDAQ:MCHP) warned on upcoming quarterly revenue. The stock tumbled about 12%. Microchip said on its earnings call talk about tariffs and a potential trade war is making its customers “nervous.”
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.