US stock futures sink on debt, recession jitters

August 19, 2011 - 7:55 AM
Wall Street

In this Aug. 18, 2011 photo, trader Lewis Vande Pallen, center, works on the floor of the New York Stock Exchange. Global stocks slid again Friday, Aug. 19, as fears of a possible U.S. recession combined with ongoing worries over Europe's debt crisis, which is stoking acute fears over the continent's banking sector. (AP Photo/Richard Drew)

U.S. stock futures are sinking as economic jitters and uncertainty about Europe's finances fuel another day of selling around the world.

European banking shares fell near two-and-a-half-year lows, dragged down by rumors about the companies' potential losses on bonds issued by heavily-indebted governments. Earlier, Asian shares took a beating, with major indexes in China and Japan losing more than 2.5 percent.

U.S. markets plunged Thursday in a return to the volatile trading that dizzied traders last week. Bad economic news has forecasters warning that another recession is possible.

Well before the market opens, Dow Jones industrial average futures are down 150, or 1.4 percent, at 10,867. S&P 500 futures are down 15, or 1.3 percent, at 1,128. Nasdaq 100 futures are down 22, or 1 percent, at 2,060.