U.S. stocks join the global selloff during early morning trading with the Dow Jones Industrial Average dropping more than 400 points after U.K.’s decision to leave the European Union.
The U.K voted 52% to 48% to leave the European Union in a referendum. The result surprised the world. During the voting, the pound plunged more than 10% to its weakest since 1985. European and Japanese stocks also tumbled. The Stoxx Europe 600 Index sank as much as 8% throughout early trading while Nikkei 225 Index closed nearly 8% lower. HSBC Holdings was down more than 10% in Hong Kong during the voting.
In the morning, British Prime Minister David Cameron resigns after ‘Brexit’ Vote. “I do not think it would be right for me to be the captain that steers our country to its next destination,” he told reporters outside his Downing Street office.
U.S. stocks also tumbled in morning trade. The Dow Jones Industrial Average fell more than 500 points shortly after the open; it now rebounds a little but still down 441.99 to 17,569.08. The S&P 500 dropped 2.68% to 2,056.72 and the Nasdaq Composite tumbled 2.5% to 4758.74.
Gold become the safest asset for investors. Gold price jumped 4.3 percent to 1,318.10.