The markets extended its losses during the midday with the Dow plummeting 155 points to 17,794. Nasdaq plunged 64 points to 4,797.
The impact of the unexpected Brexit vote last month that sparked a global financial market meltdown continued to be felt around the world. Turmoil roiled the real estate market in the U.K. as investors withdrew funds from commercial property. Several asset management firms were forced to suspend trading in real estate investment funds citing lack of liquidity.
Citi analyst Jim Suva blamed Brexit for lowering his earnings forecast for Apple. The replacement cycle for iPhones has increased while Brexit related uncertainty has lowered demand. Apple's earnings will also be hit by currency volatility.
Theresa May claimed the victory in the first round of voting for leadership of the Conservative Party while Liam Fox was eliminated. The next round of voting is scheduled for Thursday. A new leader will be chosen from two finalists in September.
In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 2 on the NYSE and by more than 3 to 1 on Nasdaq. The broader S&P 500 tumbled 18 points to 2,084. Bitcoin lost $4 to $664.
