NEW YORK (AP) — U.S. stock futures fell Friday, led by the financial sector in the wake of huge losses at J.P. Morgan on trading bets gone wrong.
Dow Jones industrial average futures fell 91 points to 12,743. Standard & Poor's 500 futures fell 10.9 points to 1,347.00. Nasdaq composite index futures slid 15.25 points to 2,603.5.
All major U.S. indexes headed for weekly losses. However, as opposed to most of the week, the losses Friday were not being driven out of news from Europe.
A major blunder in the office that manages risk for JPMorgan brought the focus back to the U.S. and it was troubling news from Wall Street that rattled indexes worldwide.
Germany's DAX fell 0.6 percent to 6,476.43. The CAC-40 in France dropped 1.3 percent to 3,089.2 and Japan's Nikkei 225 index fell 56.34 points to 8,953.31.
After markets closed Thursday, JPMorgan Chase & Co., the largest bank in the United States, said that it lost $2 billion in the past six weeks in a portfolio designed to hedge against risk.
The misstep comes amid a heated political battle about how closely to regulate banks, though J.P. Morgan CEO Jamie Dimon said that the trades would not have been affected by rules under the so-called Volcker rule, expected to take effect this summer.
That did not stop investors from cutting their exposure to the financial sector before the markets opened Friday.
In premarket trading, shares of J.P. Morgan tumbled more than 8 percent, or $3.45, $37.29. Citigroup Inc. slumped 4 percent, or $1.26, to $29.39. Bank of America Corp. fell 2.5 percent to $7.51.
Also on Friday, the Labor Department said that the producer price index, which measures price changes before they reach the consumer, dropped 0.2 percent last month. It was the first decline since December and the biggest drop since October. Declines were driven by gas and energy prices.
Crude and gasoline futures slid again Friday.
- Investment & Company Information