U.S. stocks plunged the most in 10 months, joining a selloff in global risk assets on speculation that the U.K. decision to leave the European Union will hamper worldwide growth. Banks and industrial shares capped their worst single-day declines in more than four years.
SPY before (6/23) and after (6/24) the Brexit vote
The pound plunged the most in 30 years and European equities dropped as investors weighed the implications for the global economy.
As if results of the U.K. vote wasn’t enough, today is also the date of the annual rebalancing of FTSE Russell’s stock indexes, a procedure that reliably exacerbates trading. In 2015, the reconstitution helped fuel a jump in volume to more than 10 billion shares, the seventh-highest total of the year.
As if results of the U.K. vote wasn’t enough, today is also the date of the annual rebalancing of FTSE Russell’s stock indexes, a procedure that reliably exacerbates trading. In 2015, the reconstitution helped fuel a jump in volume to more than 10 billion shares, the seventh-highest total of the year.
London bookies blew the Brexit call: none of the UK pollsters, bookmakers and city experts realized there was a huge groundswell of anger.
Declines Friday also came after markets had rallied during the past week on optimism the U.K. would vote to remain in the EU, with the S&P 500 rising 1.7 percent in four sessions.
The vote comes at a time when uncertainty already plagues U.S. stocks, with questions around the Fed’s ability to stoke growth after the worst month for hiring since 2010, a four-quarter decline in corporate profits, price-earnings ratios that are close to a decade high and a presidential election looming in the fall.
The S&P 500 plunged 11 percent in its worst-ever start to a year before recovering through April. It’s
virtually been stuck in place since, struggling to hold above the 2,100 level that has capped three rallies since November. It fell from that perch again after closing above it Thursday for the first time in two weeks.
FXB
European banks
