The Short: U.S. stocks tumble for second day after Brexit vote
Materials and energy stocks were leading the losses, down 3.2% and 2.8%, respectively, while utilities and telecom, sectors typically viewed as a safety play in times of distress, were the best performers.
Meanwhile, both the Dow and the S&P fell Monday below their widely watched 200-day moving average for the first time in three months, joining all the other major market indexes below the key technical threshold.
The selloff spilled over to the U.S., as “investors are assuming that central banks will treat this as yet another reason to keep rates low—and thus banks will not be able to make money,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital, pointing to the fact that ultralow government yields are traditionally viewed as hurting bank profitability.
Fed Chairwoman Janet Yellen said ahead of Thursday’s historic referendum in the U.K.
The Brexit fallout continued to keep European stock markets under pressure.
The yield on 10-year U.K.
Other movers and shakers: U.S.-listed shares of Randgold Resources Ltd.
trade gap in goods widened in May, as imports grew while exports fell slightly.
The Long: Amid the global flight to quality, so-called risk assets like European equities and oil CLQ6, -3.63% got hammered, while the pound GBPUSD, -3.6707% slid to a 31-year low.
The S&P 500 SPX, -1.95% fell 36 points, or 1.8%, to 2,001, with eight of its 10 sectors in negative territory, having recovered from an earlier 46-point deficit.
The Dow Jones Industrial Average DJIA, -1.67% dropped 252 points, or 1.5%, to 17,148, led by American Express Co.
Meanwhile, the Nasdaq Composite COMP, -2.39% lost 101 points, or 2.2%, to 4,606, following an earlier 132-point deficit.