Featured # Markets | 2 years ago

Wall Street Drags on Impending Referendum Decision

A drop in technology stocks managed to drag down all three of the major U.S. stock indexes Friday. Investors continue to have anxiety about our global economic growth, considering the impending referendum on June 23rd. Britain’s vote has caused a wave of uncertainty among the world, affecting stocks and bond yields for the past week, and spiking safe-haven assets such as gold and the yen. However, the murder of a pro-“stay in the EU” British politician Thursday forced the referendum campaign to come to a halt. Experts say that the incident could start a pro remain rally, especially considering the pro leave campaign is now gaining more momentum. Other risky assets such as crude oil futures rallied Friday, as the commodity rose over 2.5% after a seven-day decline The S&P energy sector remained the only index in the green.

“Today I expect bit of a flattish day…. We are probably going to drift along until there’s a decision. If the UK exits, people are going to be very panicky about what will happen,” said CEO of PSW Investment Phil Davis.

At the beginning of the morning trade, the Dow Jones Industrial Average (.DJI) fell 47.6 points, or 0.27%, to 17,685.5, while the S&P 500 (.SPX) declined 6.35 points, or 0.31%, to 2,071.64. The Nasdaq Composite (.IXIC) fell 27.21 points, or 0.56%, to 4,817.70. Almost all of the ten major S&P sectors declined, led by a shed of 0.61% in information technology indexes. The Federal Reserve left their short-term interest rates unchanged Wednesday in addition to cutting their forecast for economic growth. Advancing issues outnumbered the decliners on the New York Stock Exchange by 1,506 to 1,178. On the Nasdaq, 1,258 issues fell, and 988 rose. The S&P 500 index showed seven new 52-week highs and two new lows, while the Nasdaq recorded 13 new highs and 11 new lows.

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