How the world reacted to the Brexit vote: What it means for stocks and the economy
The European Union’s decision to leave the European Union was hailed as a victory for global stock markets.
But the reaction from investors has been muted.
The Dow Jones Industrial Average closed down more than 2,000 points, or 0.4%, at 16,633.62.
The S&P 500 index lost more than 1,000, or 1%, to 2,637.53.
And the Nasdaq Composite index fell more than 50 points, trading down 0.8%, to 5,957.94.
This is the first time in history that the global stock market has lost more in a single day than it gained.
In the US, the Dow Jones fell more in trading Thursday than in any other day in a decade.
The index lost about 9% on Thursday.
For the second day in succession, the S&s fell sharply.
The Nasdaq fell about 9%.
The Dow dropped more than 12%.
On Thursday, stocks lost around $8 billion in value, or a little more than 3%.
Analysts at Capital Economics said the Dow was still the biggest loss of value since the 2007 financial crisis.
The drop in the Dow reflects concerns that the Brexit will hurt economic growth and the broader recovery.
The S&am is still down more, but it has fallen by nearly 12% in a month.
Investors were concerned that the US would lose its place as the top-performing economy and its currency would lose some value as well.
This is the most significant drop since 2007, and it reflects that investors have not been convinced that the European economic recovery is on track.
A stronger US dollar and a lower euro could hurt US stocks in the short term, as investors are more worried about the effect of Brexit on global trade.
At the same time, investors are worried about Britain’s departure from the EU and are looking for growth-enhancing assets.
Investors also are concerned that Brexit will cause a drop in oil prices, as well as inflation.
But that may not be a problem for the US economy in the long term.
If investors had bought the S+amp;+amp on Thursday, they would have bought around $2 trillion, or around 3% of global economic output, according to Bank of America Merrill Lynch.
The bank estimated the Dow would have increased by about 8% over the next four years.
“The market is not going to have the same response in the US,” said Jonathan Mancuso, chief investment officer at Mancusa Asset Management.
When markets close on Friday, investors will be more worried that Brexit is hurting the economy, he added.
What will the Brexit effect be?
In Britain, there are fears that the referendum will lead to a hard Brexit, which could result in a reduction in the UK’s rebate for its members of the EU.
This would hurt British exports and hurt the British economy.
That would also have a negative impact on the European economy.
A weaker pound would also reduce demand for British exports.
And the US will likely see a slowdown in global economic activity, particularly for manufacturing, which is what the UK depends on.
So, the UK is already hurt, and the UK will continue to be hurt in the coming months, Mancuca said.
Brexit also could have a significant effect on the euro zone.
The EU will probably look to boost growth and stimulate the eurozone economy, which would lead to higher prices for goods and services in the region, according the bank.
How long will the market stay down?
The Dow Jones index is still the second-largest in the world.
The market is up around 6% so far this year.
But analysts said the stock market is in for a long wait before the Dow dips back below 1,200 points, the level it reached in the early 1990s.
There are more than 150,000 companies listed on the Dow in the United States, according