U.S. stocks remained under pressure Monday as the ongoing turmoil in Turkey dampened investors’ appetite for riskier assets although the S&P 500 and the Dow Jones Industrial Average both pared losses in the late afternoon.

While the U.S. doesn’t have much direct economic exposure to the country, instability in the region sparked concerns that its problems could spill over to other parts of the world, exacerbating the uncertainty surrounding trade relations between the U.S. and its major trading partners.

What are benchmarks doing?

The Dow Jones Industrial Average DJIA, -0.29% pulled back from triple digit losses to shed 67 points, or 0.3%, to 25,246. The S&P 500 SPX, -0.18% fell 4 points, or 0.2%, to 2,828, while the Nasdaq Composite Index COMP, -0.03% wove in and out of negative territory, edging down a point to 7,837.

Six out of 11 S&P 500 sectors were lower with materials the biggest loser, down 0.9%. Energy was another significant laggard, falling 0.8% while utilities were among the few gainers, up 0.2%.

What’s driving markets?

U.S. investors kept a close eye on developments in Turkey. The Turkish central bank pledged in a statement Monday to provide “all the liquidity the banks need.” It also said banks would be able to borrow foreign-exchange deposits from the central bank at one-month and one-week maturities. Analysts said Turkey’s reluctance to raise interest rates stood out.

However, those events failed to curb concern about possible contagion from Turkey’s currency crisis, with market participants fretting that the tumble in the lira USDTRY, +8.9599% could ripple though financial markets, hurting emerging-market economies. Concerns also remain about exposure of European banks to a weakening lira.

The Turkish lira extended its slide, with one dollar buying 7.002 lira, compared with 6.427 lira late Friday, a decline of 6.4% for the currency after it plunged about 14% on Friday. At the lira’s lows, a dollar bought 7.131 lira.

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Very informative
05-03 04:23 by Liam
The same day Trump spoke with Reynolds
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