Stocks fell on Friday as geopolitical concerns pushed the Turkish lira to a record low against the dollar and rattled investors.
The Dow Jones Industrial Average dropped 196.09 points to 25,313.14 as Intel declined. The Dow also erased its gains for the month of August and posted a three-day losing streak. The S&P 500 fell 0.7 percent to close at 2,833.28 as financials and materials lagged. The Nasdaq Composite also pulled back 0.7 percent to 7,839.11 and snapped an eight-day winning streak.
Bank shares led the way lower in the U.S. as Bank of America, Goldman Sachs and Morgan Stanley all dropped at least 1 percent. Tech shares also fell as Facebook, Alphabet and Amazon all declined.
"This is a classic, instinctive reaction in the market," said Quincy Krosby, chief market strategist at Prudential Financial. "Stocks are down while ... Treasurys are getting a bid."
"The currency issue in emerging markets, in Turkey, is nothing new. This is just exacerbated," Krosby added. She also noted that global central banks could take action to prevent the situation from getting worse. "Historically, you've seen central banks act to ease these types of situations. The goal for them is to minimize collateral damage."
The lira briefly fell 20 percent to a record low after President Donald Trump authorized the doubling of metals tariffs on Turkey. The currency later traded down 15 percent against the dollar.
Trump's comment came after Turkish President Recep Tayyip Erdogan asked citizens to "change the euros, the dollars and the gold that you are keeping beneath your pillows into lira," noting this is "a domestic and national struggle."
Turkish stocks also fell on Friday as the iShares MSCI Turkey ETF dropped 14.5 percent. The ETF was already down 42.3 percent this year prior to Friday's losses.
The drop came after a Turkish delegation returned from Washington with no apparent progress being made on the detention of Andrew Brunson, an American pastor detained in Turkey in 2016. Turkish authorities accuse Brunson of supporting a failed coup attempt earlier that year.