The S&P Index Notes it’s Worst Day in Ten Months Following ‘Brexit’
British exit from the European Union affected the stock markets worldwide with investors from Europe to Asia looking for ways to control losses in the middle of sliding equity prices. However, looking from a broader angle the battered look appears more like a dot for the investors in the U.S.
After plunging for greater than five percent as the aftermath of Brexit on Friday morning, the S&P 500 Index bounced back, rubbing out almost half of its losses when it was time for the exchanges open again. The index, in hope of a 'remain' vote, rallied two percent in the earlier four days. The week was finished by the index down about 1.6 percent and that compares with the losses amounting double of those in the other markets in the developed countries.
On Friday, the S&P 500 turned negative for the year-to-date after the Wall Street suffered its biggest selloff in last ten months following Britain's decision. Losing its all year gain the S&P 500 suffered the steepest decline since last year's August.
In the busiest trading volume for a single session in nearly five years, financial stocks .SPSY led the decline on the S&P 500 with a 5.4 percent drop -the largest for the sector since November 2011.
Stephen Auth, chief investment officer at Federated Investors in New York said, "The market has really not fully digested the second-order impacts of this. We are keeping our clients in dividend stocks and on a defensive strategy. That's the story until we reach better risk-reward levels" somewhere near the February's S&P 500's low of 1,830.
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