Despite gains early on, U.S. equities again succumbed to the global uneasiness surrounding the potential spillover effect of the economic/currency crisis in Turkey, finishing lower but off the lows of the day. Financials led the way to the downside and energy issues saw some pressure amid the continued downdraft in crude oil prices. Meanwhile, Treasury yields moved higher and the U.S. dollar was little changed in the midst of a dormant economic calendar, while gold tumbled.

The Dow Jones Industrial Average (DJIA) declined 125 points (0.5%) to 25,188, the S&P 500 Index decreased 11 points (0.4%) to 2,822, and the NASDAQ Composite was 19 points (0.3%) lower to 7,820. In moderate volume, 723 million shares were traded on the NYSE and 1.9 billion shares changed hands on the NASDAQ. WTI crude oil fell $0.43 to $67.20 per barrel and wholesale gasoline lost $0.03 to $2.01 per gallon. Elsewhere, the Bloomberg gold spot price tumbled $16.19 to $1,194.38 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was unchanged at 96.38.

Treasuries were lower amid an economic calendar void of any major releases today, as the yield on the 2-year note ticked 1 basis point higher to 2.61%, the yield on the 10-year note rose 2 bps to 2.68%, and the 30-year bond rate advanced 3 bps to 3.05%

The markets continued to grapple with a solid economic/earnings foundation, relatively calm Fed tightening concerns, and the escalated economic/currency crisis in Turkey.

Stocks in Asia finished broadly lower amid festering global market concerns toward the potential impact of the Turkish economic/currency crisis, which continued to hamper conviction. Japanese equities dropped sharply, with the yen gaining noticeable ground. Mainland Chinese stocks and those traded in Hong Kong fell 1.5%, while the markets digested late-Friday’s data that showed an unexpected quarter-over-quarter contraction in Hong Kong’s Q2 GDP. Meanwhile, markets in Australia and South Korea were lower, and stocks in India finished to the downside amid the Turkish turmoil uneasiness, which appeared to overshadow late-Friday’s report that showed the nation’s industrial production rose more than expected. After the closing bell, India reported a larger-than-expected slowdown in consumer price inflation for July.

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