Wall Street Plummets After Britain’s ‘Brexit’ Vote

The S&P 500 closed 36.87 points lower, a loss of 1.8%, at 2,000.55, with eight of its 10 sectors in negative territory. “Wow, I didn’t expect them to get out, but hey, it’s a majority vote there just like it is here”, Morgan said. He oversees about $200 billion. “This selloff is an opportunistic one to buy”.

Markets in mainland Europe were hit the worst, with Milan and Madrid each down more than 12 per cent for their biggest losses ever. S&P 500 e-minis were up 18 points, or 0.87 percent, with 268,362 contracts traded.Nasdaq 100 e-minis were up 38.75 points, or 0.88 percent, on volume of 37,289 contracts.All three index futures were trading at a one-month high. Altria Group, the largest US cigarette maker, was up 2.3 percent at $67.85 after hitting a record high of $67.97.

That doesn’t mean the biggest single-day loss since August was painless. As votes rolled in, early indications were for a “Remain”, sending S&P 500 futures higher before their eventual lurch.

Britain’s exit from the European Union calls into question the resilience of the Eurozone and the euro.

“The shock we have seen so far in markets is not enough to push the USA economy into a recession”. Hong Kong’s Hang Seng index tumbled 4.4 percent and stocks in Shanghai, Taiwan, Sydney, Mumbai and Southeast Asian countries were sharply lower.

The market was already expected to be volatile on Friday as traders adjust portfolios to account for an annual reconstitution of the widely followed Russell stock indexes.

Friday was the single worst day performance for the indexes since August 24, 2015, when a Chinese economic slowdown and an 8.5 percent decline in the Shanghai Composite Index placed global financial markets in turmoil. The two have moved inversely to each other 82 percent of the time the past decade. Here’s a rundown of what markets are bracing for in the months ahead. “They’re concerned about immigration, they feel like economically they’ve been left behind”.

USA stocks also fell further Monday. Governor Mark Carney said the Bank of England could pump billions of pounds into the financial system, and the European Central Bank said it will give banks all the funding they require to counter market turmoil.

“That’s encouraging because it tells me that while there’s a fair amount of uncertainty, there’s not a lot of panic”, said Randy Frederick, managing director of trading and derivatives at Schwab Center for Financial Research.

Banks and tech stocks were among the biggest losers. Materials shares led losses, falling 2.6 percent.

Considerable weakness is also visible among financial stocks, with the NYSE Arca Broker/Dealer Index and the Dow Jones Banks Index tumbling by 4.8 percent and 4 percent, respectively.

In afternoon trade, the Dow Jones industrial average declined 514 points, or 2.86 percent, to 17,499, with Goldman Sachs leading decliners and Wal-Mart the only advancer. Stock values of US -based multinational investment banks that operate in the United Kingdom also posted massive losses with the Brexit.

The decline during regular market hours seemed more orderly, but the S&P 500 financial sector posted its largest percentage decline since November 2011, tumbling 5.4 per cent.

And the dismal performance for stocks continued Monday…