Major US stock indexes finished trading in negative territory

The main US stock indices fell noticeably, as investors assessed the impact of the financial crisis in Turkey, as well as the growing tensions between the US and its trading partners.

While the lira continued to recede from record lows against the dollar, Turkey announced higher duties on imports of some US goods, including cars, alcohol and tobacco, in response to the US decision to double import tariffs for steel and aluminum.

Investors also attracted some attention from the US. The Commerce Department reported that retail sales in the US rose much more in July than expected, and the previous increase in sales was revised downward. According to the report, retail sales in July grew by 0.5% after growing by 0.2% in June (revised from 0.5%). Economists expected a less significant increase in the indicator - by 0.1%. Excluding the modest growth in sales of cars and parts, retail sales rose 0.6% in July after rising 0.2% in June. Sales of cars increased by 0.3%, as expected.

Meanwhile, the Labor Department said labor productivity rose 2.9% in the second quarter after rising 0.3% in the first quarter (revised from + 0.4%). Economists expected an increase of 2.3%. The report also says that labor costs per unit of labor decreased by 0.9% in the second quarter after an increase of 3.4% in the first quarter. Economists predicted that costs would increase by 0.3%.

In addition, the Fed said that industrial production in July rose by 0.1% after an increase of 1.0% in June (revised from + 0.6%). Economists had expected that production would grow by 0.3%. The last change reflected the growth in manufacturing in the manufacturing industry by 0.3% after an increase of 0.8%.

Oil futures fell more than 3% on Wednesday, which was due to weaker prospects for global economic growth and a report on oil stocks in the US. The US Energy Ministry reported that for the week to August 10, oil reserves jumped by 6.805 million barrels, although analysts had expected a reduction of 2.499 million barrels. This was the maximum increase since March 2017.

Most components of DOW finished trading in the red (18 out of 30). Leader of growth were the shares of Pfizer Inc. (PFE, + 1.13%). Outsider were shares of Chevron Corporation (CVX, -3.74%).

Almost all S & P sectors recorded a decline. The largest drop was shown by the commodity sector (-3.2%). Only the utilities sector grew (+ 0.3%).

At closing:

Dow 25,162.41 -137.51 -0.54%

S&P 500 2,818.37 -21.59 -0.76%

Nasdaq 100 7,774.12 -96.78 -1.23%