JPM JP Morgan Chase and Co

By Ellie Ismailidou and Sara Sjolin, MarketWatch

Financials lead the losses; government-bond yields tumble; pound plunges to 31-year low

U.S. stocks tumbled Monday morning as investors continued to dump assets perceived as risky in the wake of U.K.'s vote to leave the European Union.

Amid the global flight to quality, risk assets like European equities (http://www.marketwatch.com/story/european-stocks-drop-to-4-month-low-as-brexit-fallout-continues-2016-06-27)and oil got hammered, while the pound slid to a 31-year low (http://www.marketwatch.com/story/pound-continues-to-slide-as-brexit-shock-waves-linger-2016-06-27). Gold futures and bonds benefited from safe-harbor purchases, pushing higher government bond yields to record lows.

The S&P 500 lost 24 points, or 1.3%, to 2,011, with nine of its 10 sectors in negative territory. Financial stocks were leading the losses, down 1.7%, while utilities, a sector typically viewed as a safety play in times of distress, were the only sector in positive territory, up 0.2%.

The Dow Jones Industrial Average dropped 234 points, or 1.3%, to 17,176, led by American Express Co.(AXP) and J.P. Morgan Chase & Co.(JPM), down 2.2% and 2.1% respectively.

Meanwhile, the Nasdaq Composite lost 69 points, or 1.5%, at 4,638.

The selloff follows Friday's carnage, when the market saw its sharpest selloff since last August after the U.K.'s decision to quit the EU, known as Brexit.

Read: S&P 500 could drop as much as 7% in Brexit swoon (http://www.marketwatch.com/story/brexit-sparked-volatility-will-continue-to-weigh-on-us-stock-market-2016-06-25)

That so-called Brexit vote, or Britain's decision to exit the EU, sparked a drop 611 point tumble, or 3.4% for the Dow. The Nasdaq Composite Index and S&P 500 lost 4.1% and 3.6%, respectively. All three benchmarks were in negative territory for the year, with the Nasdaq leading the losses, off 7.1% so far this year.

(END) Dow Jones Newswires

June 27, 2016 09:47 ET (13:47 GMT)

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