Stock index futures slid on Monday, putting Wall Street on track to extend a global rout as embattled insurer American International Group's
The diminishing appetite for risk slammed stock markets around the world, with European benchmark indexes down 4 percent or more, while futures suggested Wall Street may open down at least 2 percent.
The Dow would likely open below 7,000, a level that the blue-chip index last fell through, on an intraday basis, in late October 1997.
Before the bell, financial shares were among the top drags, with Goldman Sachs
AIG, the recipient of $150 billion in taxpayer aid last year, will get access to an additional $30 billion under the government's revised plan announced on Monday.
Its fourth-quarter loss was the biggest in U.S. corporate history.
The market is bracing for more negative news within the economy and corporate America and today's AIG news reinforces the fact that there are still problems out there, said Peter Cardillo, chief market economist at Avalon Partners in New York.
News that EU leaders were considered not to have reached any meaningful agreement on a rescue package for eastern Europe added to risk aversion.
S&P 500 futures fell 18.80 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 tumbled 150 points, and Nasdaq 100 futures lost 28.50 points.
(The news from Eastern Europe) is very negative as well -- it's gloom and doom, no good news around and complicating the matter is a total breakdown in the market's technicals, Cardillo added.
(Additional reporting by Edward Krudy; Editing by James Dalgleish)