Britain's decision to leave the European Union caught traders wrong-footed and caused the value of the British pound to fall as Wall Street suffered its largest selloff in 10 months on Friday.<br />The S&P 500 lost all the year's gains and suffered its largest decline since late August last year.<br />In the busiest trading volume for a single session in nearly five years, financial stocks led the decline on the S&P 500 with a 5.4 percent drop -the largest for the sector since November 2011.<br />Market watchers expect sales to take a while to stabilize, and suggest that this turn of events will confirm the Federal Reserve's decision to hold off on an interest rate hike for the time being.<br />"The market has really not fully digested the second-order impacts of this," said Stephen Auth, chief investment officer at Federated Investors in New York.<br />"We are keeping our clients in dividend stocks and on a defensive strategy," he said.
