Futures tumble on fears of financial hit from China virus

U.S. stock index futures fell sharply on growing concerns about the financial fallout of a fast-spreading coronavirus outbreak in China as the country extended the Lunar New Year holidays and more big businesses shut down.

Travel-related stocks, including airlines, casinos and hotels, were the worst-hit in premarket trading on Monday. Several cities in China had been locked down for contagion fears and new cases were reported from across the world.

Wynn Resorts Ltd (WYNN), Melco Resorts & Entertainment Ltd (MLCO) and Las Vegas Sands Corp (LVS), which have large operations in China, were down between 5% and 7%. United Airlines Holdings Inc (UAL) and American Airlines Group Inc (AAL) fell 3.5% and 2.6%, respectively.

Shares of some tech heavyweights that enjoyed a strong rally recently were also down. Apple Inc (AAPL), Alphabet Inc (GOOGL) and Amazon.com Inc (AMZN) were all down about 2%.

Dow e-minis were down 408 points, or 1.41%. S&P 500 e-minis were down 46.5 points, or 1.41% and Nasdaq 100 e-minis were down 167 points, or 1.83%.

Shares in oil majors Exxon Mobil Corp (XOM) and Chevron Corp (CVX) fell about 2% each as crude price dropped below $60 for the first time in nearly three months as the outbreak stoked fears of slowing oil demand.

Shares of Yum China Holdings Inc (YUMC) fell 6.2% after the company said it had temporarily closed some of its KFC and Pizza Hut stores in Wuhan.

 Trader Milko Zashev

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