The S&P 500 fell 0.7 percent to close at 2,833.28 as financials and materials lagged.
President Donald Trump doubled tariffs on aluminum and steel imports from Turkey, deepening the currency's losses and raising concerns that the crisis could weigh on other economies.
"Today's impact has set the markets in a temporary risk-off sentiment", said Matt Forester, chief investment officer of BNY Mellon's Lockwood Advisors.
S&P technology sector's 0.42 percent fall was led by chipmakers.
On the TSX 78 issues advanced and 162 declined as a 0.5-to-1 ratio favoured decliners.
US market indexes saw a decline in Treasury yields Friday as concerns over Turkey's currency caused increased buying of open market Treasuries.
Citigroup, the most global of the major USA banks, fell 2.4 per cent. JPMorgan, Wells Fargo and Bank of America were also lower.
The S&P 500 opened lower by 13.94 points, or 0.49 per cent, at 2,839.64.
Mayland football coach DJ Durkin placed on leave
As of now, offensive coordinator Matt Canada , who was hired by Maryland in January, will be the interim head coach. Sources also told ESPN .com that Court, assistant athletic director of sports performance was also placed on leave.
Chip stocks fell after Morgan Stanley downgraded the USA semiconductor industry saying upside to estimates is hard to come by.
The S&P 500 is up 159.67 points, or 6 percent.
For the week, the Dow fell 0.6 per cent and the S&P 500 dipped 0.3 per cent.
China's tit-for-tat response to the Trump administration's latest round of tariffs dragged down shares of trade-sensitive stocks such as Caterpillar and Boeing. The number of Tesla shares sold short rebounded and are now higher than before Chief Executive Elon Musk on Tuesday proposed taking the electric vehicle maker private, according to data from financial technology and analytics firm S3 Partners.
The S&P 500 posted 12 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 82 new highs and 88 new lows.
Declining issues outnumbered advancers for a 1.63-to-1 ratio on the NYSE and for a 1.06-to-1 ratio on the Nasdaq.
About 5.9 billion shares changed hands on US exchanges. Excluding the energy sector, the earnings growth estimate declines to 20.4 percent, according to Thomson Reuters.