Dow Sinks 500+ at Open

Brexit vote taking a toll on Wall Street, too
By Newser Editors and Wire Services
Posted Jun 24, 2016 8:41 AM CDT
Dow Sinks 500+ at Open
A currency trader rubs his eyes at the foreign exchange dealing room in Seoul, South Korea.   (AP Photo/Lee Jin-man)

The Brexit vote is having the expected effect on the US stock market: The Dow dropped more than 500 points, about 3%, at the open, and the S&P 500 and Nasdaq were similarly tanking, reports Marketwatch. The dismal start follows awful performances at markets around the world as investors worry about the ramifications of Britain's unprecedented decision to leave the European Union. Japan's Nikkei finished down 8%, and some in Europe are faring even worse, including Greece (13.8%), Spain (12%), and Italy (11%), reports the Wall Street Journal.

“This could be a new Lehman moment,” says the chief executive at Hermès Investment Management. “If other European countries start talking about referendums, all bets are off.” A senior market analyst at Oanda in London tells AP that "all eyes will now be on central banks around the world to see how they respond to these market developments, particularly the Bank of England and the Bank of Japan." (Here's what happens next in the Brexit drama.)

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