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US stocks tumble on Brexit vote; Dow off 2.5%

Friday, June 24, 2016 - 22:21
38842154 - 24_06_2016 - US-U.S.-MARKETS-REACT-TO-HISTORIC-'BREXIT'-VOTE-IN-UK.jpg

[NEW YORK] US stocks tumbled early Friday, joining an international rout after Britain's surprise vote to exit the European Union.

The Dow sank more than 500 points shortly after the markets opened at 1330 GMT, but then quickly recovered some of the losses. The selloffs in the US were smaller than in many overseas markets.

About 20 minutes into trade, the blue-chip Dow Jones Industrial Average was at 17,558,67, down 452 points, or 2.5 per cent.

The broad-based S&P 500 fell 2.6 per cent to 2,057.74, while the tech-rich Nasdaq Composite Index dropped 3.0 per cent to 4,763.02.

Analysts described the US investor reaction to the unexpected outcome in Britain as negative and decisive, yet relatively orderly.

"All that can be determined at this juncture is that there is a heightened feeling of uncertainty following the UK vote and a heightened sense of dismay that, for the first time since the financial crisis, a purported 'worst-case scenario' has actually happened," said Briefing.com analyst Patrick O'Hare.

"The extreme reactions to the vote speak to the equally high level of complacency in the thought that a worst-case scenario would not happen."

AFP