Fallout over the UK’s decision to leave the European Union has arrived at the New York Stock Exchange.
The Dow Jones Industrial average plummeted about 500 points in early trading, shedding around 2 percent of its total value. This morning’s plunge represents the Dow’s biggest drop in 10 months.
Meanwhile, the S&P 500 fell 54.94 points, while the Nasdaq slid more than 174 points.
The volatility on Wall Street reflects worldwide financial upheaval brought on in the wake of the UK’s referendum. Early this morning, markets throughout the UK, the rest of Europe, and Asia saw massive losses of wealth as investors reacted to the unprecedented situation.
This is largely how world financial markets were expected to react to a "Leave" vote.
Before the vote, economists warned that a Brexit vote would carry serious consequences for the UK’s economy. The British government itself estimated that the country’s economy could shrink as much as 8 percent by 2030 as a result. However, the decision's effects are expected to reach far beyond the UK’s borders. The investment firm T. Rowe Price warned that a global recession seems likely, Bloomberg reported earlier today.
The news this morning out of Wall Street is by no means conclusive, as stocks could stabilize over the day, but as of right now, things aren’t looking great.