The U.S. stock market suffered its worst drop in 10 months Friday as shock over the United Kingdom voters’ move to exit the European Union and Prime Minister David Cameron’s subsequent resignation announcement sent global markets into a tailspin.
Amid swirling uncertainty over the impact of the “Brexit,” the Dow Jones industrial average tumbled 611 points, or 3.4%, to close at 17,400. The Standard & Poor’s 500 fell 3.6%. The losses dropped both stock measures back into negative territory for 2016. The Nasdaq composite, which already had been in the red for the year, fell 4.1%.
The drop erased roughly $800 billion in U.S. market value, as measured by the Wilshire 5000 index.
The events in Britain startled investors who were counting on early polls as a reliable predictor, showing support to remain in the EU. During regular trading Thursday, investors sent the Dow 230 points higher and the Standard & Poor’s 500 index to within 1% of a new record close, betting that a Brexit would be off the table.
