US STOCKS-Worst day in 10 months as Wall Street reacts to 'Brexit'

viernes 24 de junio de 2016 17:03 GYT

* Bank shares post largest drop in nearly five years

* Utilities are only S&P 500 sector in positive territory

* S&P ends negative for the year-to-date

* Indexes down: Dow 3.4 pct, S&P 3.6 pct, Nasdaq 4.1 pct (Updates to close; changes byline; adds NEW YORK to dateline)

By Rodrigo Campos

NEW YORK, June 24 (Reuters) - The S&P 500 turned negative for the year-to-date on Friday as Wall Street suffered its largest selloff in 10 months after Britain's decision to leave the European Union caught traders wrong-footed.

The British pound touched a 30-year low versus the U.S. dollar and stocks dropped sharply across the globe on fears the decision could hurt investment and usher in many months of both political and economic uncertainty.

"Expect weaker investment and thereby slower economic growth to persist during the 2-3 year negotiations to leave the European Union," Deutsche Bank economists said in a Friday note.

Equity futures neared an 11-month high to start the overnight session as markets wrongly bet that the "Remain" camp would prevail in Britain's referendum, but sold off sharply as the results showed otherwise - even triggering a market stop put in place to curtail volatility.   Continuación...