US stock index futures dropped on Monday as surging coronavirus cases increased fears of more lockdowns, while media reports stating that a few global banks moved sums of allegedly illegal funds following almost two decades hit US banking stocks.
Shares of airlines, cruise operators and hotels led declines in premarket trading, monitoring their European peers as the UK indicated the probability of a second national lockdown.
Marriott International Inc (MAR), Hilton Worldwide Holdings Inc (HLT) and Hyatt Hotels Corp (H) fell between 1.5% and 3.6%, while casino operators (WYNN) Resorts Ltd (NASDAQ; WYNN), (MGM) Resorts International (NYSE; MGM) and Las Vegas Sands Corp (LVS) shed between 2.7% and 6.0%.
Another round of business restrictions would also hurt a developing recovery in the broader economy, analysts stated, and could spark a flight from equities. The initial round of lockdowns in March had taken the benchmark S&P 500 to endure its worst monthly decline since the global financial crisis.