Stocks sold off around the world Friday, with U.S. equities erasing what would've been a sixth weekly gain as Turkey's economic crisis deepened. The dollar capped its best week since June as the lira sank to a record.
The S&P 500 index slumped in thin trading, zapping gains that had taken it within striking distance of an all-time high, falling 0.7% on Friday and 0.25% for the week. The domestically focused Russell 2000 index slipped 0.3%.
The 10-year yield slid to 2.87% as price data reinforced the Federal Reserve's rate-hike intentions and investors sought havens. Turkey's 10-year bond surged 15 basis points to 20.34%.
Geopolitical tensions between the U.S. and other countries set the tone for markets this week, with a speech from President Recep Erdogan doing little to quell investor angst that Turkey's crisis will spread to other economies. The Trump administration doubled tariffs, exacerbating the issue.
Earlier in the week, China responded to the Trump administration's trade war volley with additional tariffs of its own. Russia's ruble fell the most since the 2015 oil shock after the U.S. announced new sanctions on Russia over a nerve-agent attack in the U.K.