Investing.com - U.S. stock futures pointed to a sharply lower open on Tuesday, as fresh concerns over the handling of the debt crisis in the euro zone weighed on market sentiment.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a drop of 1.98%, S&P 500 futures signaled a 2.98% plunge, while the Nasdaq 100 futures indicated a 2.52% decline.
Market sentiment weakened amid uncertainty over how the package of anti-crisis measures agreed on at last Thursday’s European Union summit could be implemented.
Reports that Greek Prime Minister George Papandreou has called a referendum on the new aid package as well as surging Italian borrowing costs also weighed on the euro.
U.S. lenders posted sharp losses, tracking their European counterparts with shares in Citigroup tumbling 7.52% and Bank of America plunging 7.07%, while Goldman Sachs and JP Morgan plummeted 5.45% and 5.26% respectively.
Financial stocks were also rattled after brokerage MF Global filed for bankruptcy on Monday. MF Global sought bankruptcy protection within a week of Moody's decision to cut its rankings, after the firm reported a record quarterly loss.
Energy stocks added to losses, after data showed that Chinese manufacturing activity dropped to its lowest level since February 2009. Oil and gas giants Chevron Corp and Exxon Mobil saw shares tumble 4.19% and 4.16%, while coal producer Alpha Natural Resources plunged 9.49%.
In earnings, drug maker Pfizer shares slump 2.83% although it reported higher-than-expected quarterly earnings and reaffirmed its 2012 targets.
Thomson Reuters dropped 1.98%, despite also beating forecasts, earning 56 cents per share, up from 49 cents last year.
On the upside, Herbalife Ltd., the seller of nutritional and weight-loss supplements, jumped 1.66% after announcing that its 2012 earnings would be no more than USD3.45 a share, below analysts' expectations.
Meanwhile, health insurance group Humana held on to Monday's gains, soaring 5.65% after posting a higher-than-expected profit and boosting its full-year earnings forecast.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 sank 5.77%, France’s CAC 40 tumbled 5.41%, Germany's DAX fell 5.76%, while Britain's FTSE 100 posted a 3.56% decline.
During the Asian trading session, Hong Kong's Hang Seng Index tumbled 2.5%, while Japan’s Nikkei 225 Index fell 1.7%.
Later in the day, the Institute of Supply Management is to produce a report on U.S. manufacturing activity.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a drop of 1.98%, S&P 500 futures signaled a 2.98% plunge, while the Nasdaq 100 futures indicated a 2.52% decline.
Market sentiment weakened amid uncertainty over how the package of anti-crisis measures agreed on at last Thursday’s European Union summit could be implemented.
Reports that Greek Prime Minister George Papandreou has called a referendum on the new aid package as well as surging Italian borrowing costs also weighed on the euro.
U.S. lenders posted sharp losses, tracking their European counterparts with shares in Citigroup tumbling 7.52% and Bank of America plunging 7.07%, while Goldman Sachs and JP Morgan plummeted 5.45% and 5.26% respectively.
Financial stocks were also rattled after brokerage MF Global filed for bankruptcy on Monday. MF Global sought bankruptcy protection within a week of Moody's decision to cut its rankings, after the firm reported a record quarterly loss.
Energy stocks added to losses, after data showed that Chinese manufacturing activity dropped to its lowest level since February 2009. Oil and gas giants Chevron Corp and Exxon Mobil saw shares tumble 4.19% and 4.16%, while coal producer Alpha Natural Resources plunged 9.49%.
In earnings, drug maker Pfizer shares slump 2.83% although it reported higher-than-expected quarterly earnings and reaffirmed its 2012 targets.
Thomson Reuters dropped 1.98%, despite also beating forecasts, earning 56 cents per share, up from 49 cents last year.
On the upside, Herbalife Ltd., the seller of nutritional and weight-loss supplements, jumped 1.66% after announcing that its 2012 earnings would be no more than USD3.45 a share, below analysts' expectations.
Meanwhile, health insurance group Humana held on to Monday's gains, soaring 5.65% after posting a higher-than-expected profit and boosting its full-year earnings forecast.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 sank 5.77%, France’s CAC 40 tumbled 5.41%, Germany's DAX fell 5.76%, while Britain's FTSE 100 posted a 3.56% decline.
During the Asian trading session, Hong Kong's Hang Seng Index tumbled 2.5%, while Japan’s Nikkei 225 Index fell 1.7%.
Later in the day, the Institute of Supply Management is to produce a report on U.S. manufacturing activity.