Stock index futures fell on Thursday following a steep Wall Street sell-off that erased gains for the year.
Concerns over the fragile recovery continued to pressure investors in the aftermath of the Federal Reserve's gloomier outlook earlier this week.
A disappointing revenue forecast from Cisco Systems Inc
The Labor Department is scheduled to release its weekly report on first-time claims for unemployment benefits at 8:30 a.m. EDT. <1330 GMT> Analysts forecast initial claims declining to 465,000 from last week's reading of 479,000. The government's July report on import and export prices is also due at 8:30 a.m.
The market is trying to stabilize after yesterday's sharp decline, but we are still gripped by the fear factor that the economy is moving back to recession, said Peter Cardillo, chief market economist at Avalon Partners in New York.
S&P 500 futures edged down 6.3 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dipped 35 points, and Nasdaq 100 futures fell 14.25 points.
All three major indexes recorded their worst percentage drop since July 16 on Wednesday.
The S&P 500 will struggle to stay above the July 30 low of 1,088, briefly touched on Wednesday. A breach of that level takes near-term technical support down to 1,057, which is roughly 3 percent below the benchmark's close on Wednesday.
In company news, General Motors Co
According to an NBC News/Wall Street Journal poll released Wednesday, pessimism over the U.S. economy is rising and the grim mood could hurt both parties in the November 2 Congressional elections.
Bookseller Barnes & Noble Inc
American International Group Inc
Commodity prices and energy stocks declined as investors turned away from risk-associated assets. U.S. crude oil futures fell 1.7 percent to $76.70 a barrel, dropping for a third straight day.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)