U.S. futures markets are down sharply Friday morning, following the U.K.'s vote to leave the European Union. S&P 500 futures were down nearly 4% while Dow futures were down 3%. Gold, which was up nearly 5%, was one bright spot in an otherwise weak market as investors fled to perceived safety amid the uncertainty brought on by the Brexit vote.
Goldman Sachs (GS), which had given money to the U.K.'s "Remain" campaign, was down as much as 7% Friday morning. With the U.K. now destined to leave the European Union, U.S. banks that maintained their European headquarters in London may now be under pressure to move as they may will no longer have passports to mainland Europe. The dip in Goldman's stock comes hours after the Federal Reserve released the results of the first part of the annual "stress test."
Elsewhere, the big U.K. banks took the brunt of the damage in premarket trading, with Barclays (BCS) shares trading down 26% and Royal Bank of Scotland (RBS) off by nearly 24%. Meanwhile, London-based Lloyd's (LYG) was also trading down about 26% before the opening bell.
Xerox (XRX) announced after Thursday's close that Jeff Jacobson, who is the current president of Xerox Technology, will be succeeding CEO Ursula Burns after the company completes its split later this year. Burns will remain chairman of the copier business. Xerox has announced plans to split into two companies, the first, which is keeping the Xerox name, is going to focus on its core documents business. The second company, which will be called Conduent, will focus on business process outsourcing.
-- Written by Carleton English, James Passeri contributed.