Brexit gave Wall Street its worst day in 10 months
- 8 years ago
Britain's decision to leave the European Union caught traders wrong-footed and caused the value of the British pound to fall as Wall Street suffered its largest selloff in 10 months on Friday.
The S&P 500 lost all the year's gains and suffered its largest decline since late August last year.
In the busiest trading volume for a single session in nearly five years, financial stocks led the decline on the S&P 500 with a 5.4 percent drop -the largest for the sector since November 2011.
Market watchers expect sales to take a while to stabilize, and suggest that this turn of events will confirm the Federal Reserve's decision to hold off on an interest rate hike for the time being.
"The market has really not fully digested the second-order impacts of this," said Stephen Auth, chief investment officer at Federated Investors in New York.
"We are keeping our clients in dividend stocks and on a defensive strategy," he said.
The S&P 500 lost all the year's gains and suffered its largest decline since late August last year.
In the busiest trading volume for a single session in nearly five years, financial stocks led the decline on the S&P 500 with a 5.4 percent drop -the largest for the sector since November 2011.
Market watchers expect sales to take a while to stabilize, and suggest that this turn of events will confirm the Federal Reserve's decision to hold off on an interest rate hike for the time being.
"The market has really not fully digested the second-order impacts of this," said Stephen Auth, chief investment officer at Federated Investors in New York.
"We are keeping our clients in dividend stocks and on a defensive strategy," he said.