The markets recovered during the midday with the Dow gaining 50 points to 17,891 as crude oil prices advanced. Nasdaq climbed 30 points to 4,853.
Nearly two weeks after the Brexit vote, the value of the British pound continued to fall dropping to its lowest level in 31 years. Today's decline was caused by the suspension of withdrawals from real estate investment funds by three large asset management firms yesterday. With no Brexit plan in place, the pound is expected to fall even further.
Despite the recent Brexit induced global market turmoil, the U.S. service sector expanded in June. The Institute for Supply Management's nonmanufacturing purchasing manager's index rose more than expected to 56.5 last month with new orders climbing to 59.9. The increase in service sector activity indicates that the nation's economy is slowly strengthening.
Investors around the world are pouring their resources into safe haven investments. Gold prices have risen for the fifth day in a row. The yield on the U.S. 10-year government bond has fallen to a record low of 1.36% on strong demand.
In the broad market, advancing issues outpaced decliners by a margin of nearly 3 to 2 on the NYSE and by more than 5 to 3 on Nasdaq. The broader S&P 500 gained 7 points to 2,095. Bitcoin added $1 to $663.
