U.S. stock index futures eased slightly in early trading on Sunday after Britain’s vote to leave the European Union sparked a sharp sell-off in global markets on Friday, wiping out over $2 trillion from world equities.
Investors were blindsided by Thursday’s vote, having bid up equity markets in the days leading up to it. U.S. stock indexes had been in striking distance of all-time highs, with some expecting a sharp rally to new highs in the coming days.
“The market’s expensive so the risk is really high. There’s a better time ahead for equities – it just isn’t yet,” said Steve Blumenthal, chief executive of CMG Capital Management Group Inc. in King of Prussia, Pennsylvania.
S&P 500 e-mini futures ESc1 were down 0.5 percent. Dow Jones industrial average e-mini futures 1YMc1 fell 0.6 percent and Nasdaq 100 e-mini futures NQc1 fell 0.7 percent.
With the initial shock of the unexpected result having sunk in somewhat over the weekend, some investors said the impact on the United States would be minimal and that price declines brought about by Friday’s “over reaction” could be a buying opportunity.
“The impact on the United States is not as great as many people fear,” said Michael Yoshikami, chief executive of Destination Wealth Management in Walnut Creek, California. “What you do as an investor is you look at the good-quality names.”