US pre-open: Futures in the red as global Covid cases surge

Wall Street futures were in the red ahead of the bell on Monday as market participants monitored a resurgence in global Covid-19 cases due to the omicron variant.

As of 1210 GMT, Dow Jones futures were down 0.87%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.01% and 1.24% lower, respectively.

The Dow Jones closed 532.20 points lower on Friday, extending losses recorded in the previous session as a volatile week for the blue-chip index drew to a close.

With the omicron variant spreading ahead of the winter holiday season, as the strain has now been found in 43 out of 50 US states and roughly 90 countries, the number of Covid-10 cases has doubled in 1.5 to three days in areas with community transmission, according to the World Health Organization said on Saturday. US cases hit more than 156,000 on Friday, according to the Centers for Disease Control and Prevention.

As a result, the yield on the benchmark 10-year Treasury note slipped to 1.388% due to fears that the variant would decelerate the economic recovery and keep inflation high, while reopening plays like Royal Caribbean, United Airlines, Southwest and Darden Restaurants all traded lower in pre-market.

Going the other way, Moderna shares traded higher prior to the open after the pharmaceutical giant stated its vaccine booster dose provided recipients with significant protection against omicron.

Also in focus, Democratic senator Joe Manchin has vowed not to back the White House's "Build Back Better" plan, likely killing the $1.75trn social spending and climate policy bill where it stands.

On the macro front, the Conference Board's November leading index will be published at 1500 GMT.

In the corporate space, Carnival and H&R Block will report earnings before the open, while Nike will update on recent trading after the close.