U.S. stock-index futures fell, indicating the Standard & Poor’s 500 Index will resume a selloff that began earlier this week, as signs of financial stress in Portugal fueled concern about European sovereign debt.
Pandora Media Inc. and Facebook Inc., which trade at more than 85 times reported earnings, slid at least 1.9 percent amid concern valuations in Internet and small-cap stocks have risen too far too fast. Bank of America Corp. and JPMorgan Chase & Co. retreated more than 1 percent to pace losses among financial firms.
Futures on the Standard & Poor’s 500 Index expiring in September lost 0.8 percent to 1,950.60 at 8:34 a.m. in New York. Dow Jones Industrial Average contracts slid 143 points, or 0.9 percent, to 16,770 today, while Russell 2000 Mini Index futures dropped 2 percent.
European stocks and Portuguese bonds tumbled with investor concern deepening over missed debt payments by a company linked to the Iberian nation’s second-largest lender. Portugal’s central bank said Banco Espirito Santo SA is protected after its parent missed the payments. U.S. Treasuries rallied.
Source: Bloomberg
