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STOCKS PLUNGE ON BREXIT

June 24, 2016 12:06 AM EDT

(Updated - June 24, 2016 4:12 PM EDT)

Stocks plunged Friday after Britain voted to leave the European Union in a historic referendum. Results showed 51.9% voted to leave the EU, while 48.1% voted to remain. The results were a surprise to the markets as most polls leading up to the vote suggested the country would remain.

The Dow Jones Industrial Average dropped 611 points on Friday following the surprise Brexit vote, finishing the day near session lows at 17,400. The S&P 500 closed down 3.6% at 2037 and the Nasdaq was lower by 4.1% at 4708 -- its largest fall since 2011.

The British pound fell sharply versus a host of currencies, including a 9% plunge versus the U.S. dollar. Meanwhile, gold rose 4.7% to $1,323.

The VIX, or fear gauge, rose 49% to $25.76.

European Union chairman, Donald Tusk, said 27 EU leaders are determined to keep unity after Brexit. "What doesn't kill you, makes you stronger," Tusk said in a statement. "I want to reassure everyone that we are prepared also for this negative scenario."

British Prime Minister David Cameron, who supported staying, said he would resign as Prime Minister by October.

Uncertainty reigns for investors and companies doing business in the EU. Calls have already been made for other countries to have their own referendums.

Brexit will also likely alter the U.S. Federal Reserve's plans to raise interest rates. A July hike is now seen as completely off the table and some only see one more rate hike this year - in December. Some even bet today that the Fed's next move would be to lower interest rates.

The Federal Reserve said it is carefully monitoring development following the referendum and is prepared to provide dollar liquidity through its existing swap lines with central banks.



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