Britain's vote to exit the European Union sent U.S. stocks plunging. Elly Park reports.
The Dow tumbled more than 500 points out of the gate after Britain voted to quit the European Union. When trading ended, the blue chips and S&P 500 recorded their biggest one-day drop since August. For the week, the Dow, Nasdaq, and S&P 500 fell. The Federal Reserve sought to calm the markets, but speculation rose that it could cut interest rates to shield the economy from any global fallout. State Street's Michael Arone: (SOUNDBITE) MICHAEL ARONE, CHIEF INVESTMENT STRATEGIST, STATE STREET GLOBAL ADVISORS, (ENGLISH) SAYING: "What's likely to happen, though, is you'll see some inertia. You'll see some business, consumer confidence that will be challenged because the future environment is uncertain. And that's certainly going to weigh on economic growth." Those fears of an economic slowdown clobbered travel-related stocks, like American Airlines, Priceline, and Norwegian Cruise Line. Bank stocks got whacked. The sharp drop in Treasury yields and commodity prices after the Brexit vote could further hurt banks. Investors flocked to safe havens, driving up the dollar, government bonds, and gold. In Europe, German and French stocks plummeted, getting slammed even harder than British stocks.