U.S. stocks take further losses as Turkey worries continue

NEW YORK» Stocks fell further on Wall Street Monday as Turkey’s central bank was unable to stop a steep plunge in that nation’s currency. That’s helping to push the dollar higher, which hurts big U.S. exporters.

Stocks were coming off their worst losses in a month as investors worried about financial and economic upheaval in Turkey and the possibility it will spread to other countries. Asian markets fell overnight, while European markets were slightly lower.

Global markets skidded Friday as investors worried that financial distress in Turkey could affect the international banking system and the broader economy. Many analysts say that isn’t likely, but it’s caused sharp losses for stocks.

On Monday, Turkey’s central bank announced measures to help that country’s banks, but the Turkish lira and Turkey’s stock market continued to slide.

The lira has been tumbling as investors question whether the government of President Recep Tayyip Erdogan can cope with problems including the weakening currency and a diplomatic spat with Washington that has resulted in higher U.S. tariffs.

Erdogan has ruled out the possibility of higher interest rates, which can slow economic growth, but independent analysts say higher rates are urgently needed to stabilize the country’s currency. Erdogan’s refusal is one of several factors worrying investors.

Investors also backed away from Argentina’s stock market. The Argentinian peso sank to an all-time low amid investor caution and a local corruption scandal involving former government officials.

While Turkey and Argentina face very different political situations, the currencies of both countries have tumbled to alltime lows against the dollar, partly because rising interest rates in the U.S. lure investors to take money out of their markets and move it to the U.S.

The U.S. dollar is the strongest it’s been in more than a year, which could eventually create problems for U.S. companies that make a lot of sales overseas.

Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, said the dollar has strengthened because economic growth has picked up and other regions aren’t doing as well.

“The U.S. is a relative beacon of strength with stable to improving economy. That suggests a stronger dollar,” he said.

The S&P 500 index lost 11.35 points, or 0.4 percent, to 2,821.93 after a drop of 0.7 percent Friday. The Dow Jones Industrial Average slid 125.44 points, or 0.5 percent, to 25,187.70.