The UK has voted to leave the EU, and this stunning result is sending US stocks through the floor.
Shortly after the opening bell in New York, the Dow fell as many as 500 points (2.7%), suffering its biggest drop since January 20. The S&P 500 fell 69 points (3.25%.)
The Nasdaq had its biggest drop since November 2011, and was down 170 points, or 3.47%.
The referendum outcome means the UK will begin preparations to leave the European Union, the first member to leave the 28-member bloc since its formation in 1993. The market reaction reflects how unprecented this is, and there’s a cloud of uncertainty about what it means for the global economy.
Several markets are in chaos following Thursday’s vote, with some of the most stunning moves you’ll ever see taking place.
Headlining the proceedings is a mind-blowing drop in the British pound, which fell over 10% against the US dollar to about $1.33, a 31-year low.
The pound is also getting crushed against the Japanese yen – which has seen a monster rally on Friday – with the pound losing up to 14% against the yen.
London’s FTSE fell 4.4%.
Germany’s DAX lost more than 7%.
US Treasury bonds are also catching a massive bid with the 10-year Treasury yield falling to as low as 1.48% (bond prices rise when yields fall).
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